Alexander Mining plc

Annual Report &  Accounts 2014

Revolutionising the hydrometallurgical

extraction of base metals at the mine for
the global mining industry
Strategic Report

About Us

Alexander Mining is an AIM listed mining and mineral

processing technology company with a reputation for
strong technical management, allied with financial markets
expertise and experience.

The Company’s activities are directed towards the objective

of becoming a highly profitable and diversified mining
technology company.

This will be achieved from the commercialisation of its

proprietary mineral processing technologies, partnerships
in producing mines and the acquisition of equity positions
in advanced projects.

Highlights

Further Continued interest Continued success

advancement of our from mining in registration of
proprietary leaching companies in patents
technologies leaching
technologies

Contents
Strategic Report Financial Statements
IFC Highlights 11 Consolidated Income Statement
01 Chairman’s Statement 11 Consolidated Statement of
03 Review of Operations Comprehensive Income
06 Corporate and Social Responsibility 12 Consolidated Balance Sheet
13 Company Balance Sheet
Corporate Governance 14 Statements of Cash Flows
07 Directors 15 Consolidated Statement of
08 Directors’ Report Changes in Equity
10 Independent Auditor’s Report 15 Company Statement of
Changes in Equity
16 Notes to the Financial Statements

Shareholder Information
29 Notice of Annual General Meeting
30 Notes to the Notice of
Annual General Meeting
31 Form of Proxy
IBC Directors and Advisors

Alexander Mining plc Annual Report &  Accounts 2014

Strategic Report

Chairman’s Statement &

Review of the Year
After an encouraging start, the Company’s progress during 2014 was not Commercialisation activities
as rapid as we envisaged. Although significant technical achievements The results of our commercialisation efforts during the year were
were made, our commercialisation efforts, due to third party business disappointing. In particular, this was due to the unravelling of the commercial
circumstances and related decisions beyond our control, were frustrated. licence, financing and consultancy agreement (‘Agreement’) announced in
February with the Company’s large shareholder the Ebullio Group (‘Ebullio’).
However, after an indifferent year, I am delighted with the results of the This was not due to any technology considerations but with Ebullio’s
management team’s efforts late in the reporting year which enabled the commercial decision to terminate its agreement to acquire all of the assets in
release of the most recent news announced in February 2015 regarding Turkey of Red Crescent Resources Limited. As this was a condition precedent
the potentially transformative commercialisation opportunity with Compass the Agreement was terminated. Nevertheless, we continue to have a close
Resources Limited (‘Compass’). Subject to the execution of a definitive relationship with Ebullio and to support its interest in developing mining
agreement, which is currently under negotiation, this will provide for the opportunities in Turkey.
granting of an AmmLeach® licence and certain technical and management
services for use at Compass’ Browns Oxide copper-cobalt mine. In July, the Company announced that Phoenix Global Mining (‘PGM’) had
This agreement would bring significant revenue to Alexander by way confirmed its interest in investigating the use of AmmLeach® for highly
of upfront and ongoing services fees, plus a future production royalty. prospective zinc oxide properties in Turkey. At that time PGM had an earn-in
Agreement with a Turkish industrial group, to develop their base metals
Technical work exploration and mining licences. PGM subsequently decided to drop this
There was notable research and technical development success, which opportunity for commercial reasons.
underwrites our commercialisation programme. This included the major
development announced in April 2014 of the breakthrough testwork to Alexander announced in September that it had signed an option agreement
produce the world’s first zinc cathode using our AmmLeach® technology. (‘Option Agreement’) with a mid-tier mining company (the ‘Entity’). The Entity
That work used conventional leaching, solvent extraction and electro-winning was a highly regarded mid-tier, multi-commodity mining company with
equipment in the test facility available for hire at Simulus Engineers (‘Simulus’), exploration, development and operational experience. Under the Option
Perth, Western Australia. Importantly, supporting one of the most attractive Agreement, the Entity had been granted an exclusive three months’ option
benefits of the AmmLeach® technology, i.e. significantly lower capital and period to complete due diligence on the AmmLeach® zinc processing
operating costs, and operating conditions at ambient temperature and technology. This was in exchange for the cash payment to Alexander of
pressure. This represents the first successful demonstration of AmmLeach® US$360,000. (£217,000). Exercise of the option would have resulted in further
technology for zinc at this scale and the first solvent extraction of zinc from cash payments in exchange for Alexander equity, as well as a licence with
primary oxide ores using ammoniacal leaching. a gross sales revenue royalty on all metals production by the Entity using
the AmmLeach® technology.
We believe that this confirmed our AmmLeach® process as the only
economically viable method to unlock the value of hitherto problematic Although a highly detailed and favourable technical due diligence was
zinc oxide deposits. The Company has built up an extensive database of all conducted, unfortunately the Entity had a change in its corporate plans due
of the world’s major zinc oxide deposits and has now conducted favourable to a need to focus more on its domestic growth strategy. Accordingly,
AmmLeach® amenability testwork on samples from a significant number. in December the Entity informed the Company that it would not exercise
The Republic of Turkey is a particular country of interest. its option. It advised that its due diligence on the use of the AmmLeach®
process for zinc production was favourable and it had formed the view that
Zinc oxide deposits are highly attractive in terms of their tendency to have there is value in the technology. It also said that it remained interested in
high average zinc grades both absolutely and relatively when compared with continuing to build its relationship with Alexander.
world averages for sulphide ores. In addition, the fact that most of the known
deposits are at or near surface generally makes for easier mining.
However, the inherent processing challenges have meant that almost all
remain unexploited except those with grades high enough to justify direct
shipment (+20-25% zinc) to smelters. Those deposits found in the Tethyan
orogenic belt of Turkey are especially prospective.

01 Alexander Mining plc Annual Report &  Accounts 2014

Strategic Report

Chairman’s Statement &

Review of the Year
Intellectual property Financial
The results of the programme, in conjunction with Wrays, the Company’s The Company has maintained its very tight rein on costs whilst ensuring the
patent attorney, to protect our leaching technology intellectual property (‘IP’), protection of its intellectual property through patent applications. In January
measured by patents granted by method and country have been excellent. 2015, the Company raised £360,000 (gross) through the issue of 72,000,000
This includes patents granted in Mexico, Canada, Mongolia, Botswana, new ordinary shares to institutional and other investors. The net proceeds of
Mozambique, Namibia, Tanzania and Zambia the Placing were for general working capital purposes. In conjunction with the
expected revenue from the agreement with Compass, this should ensure
Developments in 2015 adequate funding for the next twelve months on the current budget.
In late February 2015, the Company was delighted to announce that it had
signed a non-binding Heads of Agreement (‘HoA’) with Compass, a listed Outlook
Australian public company (ASX:CMR), for executing a definitive agreement In these uncertain economic times, especially for the mining business,
(‘Agreement’) covering an AmmLeach® licence and certain technical I believe that Alexander is better placed than most in the junior sector.
management services for Compass in the Northern Territory, Australia. Although global economic recovery is volatile and commodity prices have
These arrangements should significantly accelerate the first commercial fallen significantly of late, the Company will continue to work hard to succeed
adoption of Alexander’s proprietary AmmLeach® technology with with the commercialisation of its technology. Indeed the weakness in most
particular relevance to copper/cobalt resources. base metals prices during the last year and the deleterious impact on
operating margins has led to an imperative for companies to cut costs
We greatly look forward to working closely together with Compass under wherever possible. In this environment, we believe that the scope for major
this transformative agreement. Assuming the completion of a positive operating and capital cost savings for existing and potential mines using our
AmmLeach® feasibility study and production go-ahead, the mine would technology should be of ever greater interest. Particularly as the opportunity
partner our AmmLeach® technology with existing high quality mining assets. offered has significant environmental benefits.

The plan is to generate significant economic value from the Browns Oxide The exciting opportunity with Compass offers Alexander a most encouraging
mine and the first step is the completion of an AmmLeach® feasibility study, start to 2015 and I look forward with considerable optimism.
with a pilot plant programme funded by Compass. This pilot plant programme
would be carried out at the independent commercial facilities of Simulus, As always, I would like to thank the Company’s shareholders for their support
under the supervision of Alexander’s technical personnel. This would lead and also our employees, consultants and directors for their highly-valued
to the completion of a feasibility study into commercial production and is effort during the last year.
dependent upon statutory approval and obtaining all necessary permits
required to recommence production.

Compass is currently working to complete a financing facility with

sophisticated institutional investors as the first stage in a proposed major
refinancing and relisting of the company. The proceeds of their financing will
be used for various purposes, including payments due under the Agreement Matt Sutcliffe
to Alexander and for the third party AmmLeach® pilot plant and feasibility Executive Chairman
study costs. Moreover, Australia is one of the world’s leading mining countries 10 April 2015
and together with Alexander’s metallurgical team based in Perth, Western
Australia, it provides an exemplary project to work on together with Compass.

Compass and Alexander believe that market conditions are the most
favourable for several years for growth by attractively priced corporate
acquisitions. Accordingly, the companies expect to form a strategic alliance
in Australia to investigate the acquisition by Compass of copper resources
which can be exploited using the proprietary Leaching Technologies of
Alexander. This will be on terms to be agreed in respect of each such project.

02 Alexander Mining plc Annual Report &  Accounts 2014

Strategic Report

Review of Operations

Business Objective Loss of key personnel from Alexander

Alexander’s corporate objective is the profitable commercialisation of its The commercialisation of Alexander’s leaching technologies is dependent
proprietary leaching technologies (‘Leaching Technologies’) to achieve long- upon the continuing application of skills provided by highly qualified and
term capital growth and revenue from licences and royalties. This is based on experienced employees, directors and consultants. There is a risk that
the potential for major operating and capital cost savings for suitable mines Alexander’s management, employees, directors and consultants will be
using Alexander’s Leaching Technologies as the principal mineral processing targeted by competitors. The loss of any such key personnel may adversely
method to produce base metals at the mine site. In addition, the Leaching affect the ability of Alexander to achieve its objectives. Alexander mitigates
technologies may offer significant operating and environmental benefits. this risk by ensuring that all key employees, directors and consultants are
The base metals of most commercial importance are copper, zinc and cobalt. rewarded appropriately and participate in Alexander’s share option scheme,
further details of which are set out in note 20 to the Financial Statements.
Business Strategy
Alexander has adopted a flexible dual approach to the commercialisation of Intellectual property risk
its technology. It has held discussions and signed confidentiality agreements Alexander’s success depends in part on its ability to obtain and maintain
with a significant and growing number of mining companies, metals traders protection for its intellectual property, so that it can ensure that royalties or
and specialist investment institutions. In addition, it has been proactive in licence fees are payable for the use of its proprietary leaching technologies.
identifying mining properties, and their owners, with potential for the use of Alexander has applied for patents covering its Leaching Technologies in most
the Leaching Technologies. As a result, Alexander has built up a comprehensive countries of commercial interest. Although some have been granted, there is
database and also conducted amenability testwork on the many samples a risk that other patents may not be granted and Alexander may not be able
provided. Discussions have taken place and continue with interested parties, to exclude competitors from developing similar technologies.
the purpose of which is to negotiate issuing to owners a licence to use the
Leaching Technologies in exchange for royalties, cash fees and/or minority However, Alexander actively manages its intellectual property rights portfolio,
equity interests in projects. which includes significant proprietary knowhow in addition to the patent
pending innovations. When dealing with potential clients, Alexander ensures
Key Financial and Other Performance Indicators that confidentiality agreements are signed acknowledging the full range of
At this stage in its development, Alexander is focused on the commercialisation Alexander’s intellectual property. In addition, contracts are in place with all
of its Leaching Technologies. As and when it is successful in realising this relevant employees, consultants, contractors and advisers to ensure that all
stage production, financial, operational, health and safety and environmental intellectual property rights arising in the course of their work on behalf of
key performance indicators will become relevant and will be measured and Alexander vest with Alexander, and that such intellectual property can only
reported upon as appropriate. be used for the benefit of Alexander.

Business Risks Environmental risk

Alexander’s main business risk is related to the possibility of it not be able Following the sale of its Peruvian subsidiary, the Company is no longer
to successfully commercialise its technology. Inherent risk diversification is exposed to environmental risks.
offered geographically, by technology and by metal. When compared with
conventional exploration-driven mining companies, the business risks differ Financial risks are referred to in the Directors’ Report under Risk Management
markedly. The stages at which Alexander’s technology is of interest to a and Financial Risks on page 8.
potential user is from the project feasibility study stage, through to existing
mining operations. As such, the inherent technical risks of the mining industry MetaLeach®
in discovering a potential new mine do not apply as a deposit has already MetaLeach Limited (‘MetaLeach®’) is Alexander’s subsidiary for the ownership
been found. and commercialisation of its proprietary hydrometallurgical mineral processing
technologies. These technologies have the potential to revolutionise the
Development risks extraction processes for many base metal deposits, reducing costs, and/or
Alexander’s strategy to commercialise its proprietary Leaching Technologies, improving recoveries, and hence enhancing operating margins at the mine
either through third party licensing agreements or direct equity interests site. Being capable of producing metal on-site greatly enhances the mine gate
in amenable deposits, is subject to specific technical risks relating to the economics compared to conventional concentrators. In addition, in many
technologies and wider technical risks like final engineering, which are cases the technologies will enable the treatment of base metals deposits
relevant to the mining industry as a whole. which hitherto have not been possible to treat. The technologies are
especially suitable for high-acid-consuming carbonate hosted ores.
There is a risk that Alexander will be unable to negotiate suitable licensing
arrangements with third parties for the use of its proprietary Leaching MetaLeach® owns the intellectual property to two ambient temperature,
Technologies. Alexander may also be unable to negotiate as an alternative ambient pressure hydrometallurgical technologies, namely AmmLeach®
the acquisition of equity interests in amenable deposits at commercially (patents granted and pending) and HyperLeach® (patents granted and
attractive prices, or finance the acquisition thereof. Third party aspects pending). These technologies are environmentally friendly, cost effective
beyond the control of Alexander remains a risk. processes for the extraction of base metals at ambient temperature and
pressure from amenable ore deposits and concentrates allowing the
Alexander’s proprietary Leaching Technologies have not yet been applied production of high value products at the mine site (i.e. metal powder
on an industrial scale. The results of testwork performed to date, both in the or sheets).
laboratory and at pilot plant scale, although significant and positive may not
be reproducible at an industrial scale in an economically efficient manner.

Alexander mitigates and manages the developmental risk for the

commercialisation of the technologies by holding discussions with a wide
range of companies representing a number of target projects and mines with
a diversification of both metals and countries. In addition, it is likely to work
with suitably experienced third parties, including independent metallurgical
and process engineering experts in the partnering of its technologies with
mineral deposits and/or mines.

03 Alexander Mining plc Annual Report &  Accounts 2014

Strategic Report

Review of Operations
continued

Comparison of AmmLeach® with acid leaching of copper

Parameter Acid AmmLeach®

Mineralogy Oxides, carbonates, silicates, some sulphides Almost any – dependent upon pre-treatment stage
Selectivity Low: iron, manganese, calcium and silica are likely problems High: no iron, manganese, calcium or silica dissolution
Rate of extraction Limited by acid strength and diffusion Ammonia concentration in leach solution
matched to leaching rate
Recovery 80% of leachable metal >80% in ~130 days
Heap lifetime ~55-480 days ~80-130 days
Sulphate precipitation Reduced permeability in heap, break down of clays and Calcium and iron solubilities too low for precipitation,
plant scaling due to precipitation of gypsum and jarosite also low sulphate levels in leach solution
Leachant consumption Depends upon carbonate content but 30 to over 100kg/t Depends on concentration used but range of 3-5kg/t
reported for operating heaps measured at former Leon copper project;
<1kg/t in second pilot run
Safety Large volumes of concentrated acid required to be On demand ammonia / carbon dioxide systems using
transported to site hydrolysis of urea minimises risks. Anhydrous
ammonia NOT required
Precious metals Heap to be neutralised before cyanidation. Needs to be Neutralisation not required, potential for simultaneous
100% effective to prevent cyanide release recovery using thiosulphate or sequential leaching
using cyanide
Decommissioning Heap requires washing, neutralisation and long term Heap can be washed and left, residual ammonia acts
monitoring of acid mine drainage (AMD) as fertiliser for vegetation regrowth, minimal likelihood
of AMD

The AmmLeach® Process Zinc

Developed for the extraction of base metals, especially copper, zinc and The vast majority (~95%) of world zinc metal production uses smelting
cobalt from ore deposits and concentrates. The process utilises ammonia to recover and refine zinc metal from zinc-containing feed material such as
based chemistry to selectively extract metals from ores under ambient zinc concentrates or zinc oxides. Development of a new hydrometallurgical
temperature and pressure conditions. The target ores will typically be high process route for zinc oxides has the potential to simplify zinc refining.
acid consuming making them uneconomic using conventional processes.
AmmLeach® is a viable alternative to acid leach processes as it is far more MetaLeach® has developed a novel (patents granted and pending) process
selective for valuable metals whilst rejecting unwanted metals. This selectivity for the solvent extraction of zinc from ammoniacal solutions. Test work has
offers a considerable number of technical and economic benefits through shown that zinc can be very efficiently extracted using commercially available
simplification of the flow sheet. reagents and stripped with acid solutions, with better efficiency and greater
selectivity than has previously been reported.
AmmLeach® uses the same three major stages as acid processes - leaching,
solvent extraction (SX) and electro-winning (EW). Leaching occurs in two The general flow sheet for the zinc process is straightforward and consists
steps, an ore specific pre-treatment which converts the metals into a soluble of leaching, purification and recovery stages. The nature of the leach stage
form and the main leaching step, which uses barren solution recycled from depends upon a number of factors, notably the grade of ore and leaching
the SX stage. AmmLeach® requires no special purpose built equipment and kinetics. High grade, fast leaching ore would be readily accommodated by
it can directly replace acid leaching in an existing operation. It is suitable for an agitated tank leach, whilst low grade, slow leaching ores would be better
both low grade heap leaching and higher grade tank leaching. suited to heap leaching. Depending upon the product desired, there may be
no need for a solution purification stage, considerably simplifying the overall
The AmmLeach® process has an extremely high selectivity for the target process flow sheet.
metal over iron, silica, aluminium and manganese, which are insoluble under
AmmLeach® conditions. Calcium and magnesium solubilities are also A wide range of different oxide zinc mineralogies can potentially be treated
significantly suppressed by the presence of carbonate. by AmmLeach®, including those with significant hemimorphite content which
presently can only be treated using acid. In AmmLeach® solutions, the
Decommissioning of the heap is extremely simple as no neutralisation is leaching can be extremely rapid provided the conditions are appropriately
necessary and the potential for acid mine drainage is virtually eliminated. matched to the ore. The acid route requires ore containing >10% zinc to be
After final leaching the heap is simply washed to recover ammonia and then economically viable. The co dissolution of silica and iron in the acid results in
left to vegetate, with the residual ammonia acting as a fertiliser. The alkaline a very complex flow sheet, as typified by that used at the Skorpion mine in
residue allows immediate application of cyanide leaching of gold and silver in Namibia.
ores where there is an economic precious metal content after removal of high
cyanide consuming metals such as copper. Copper process economics
An analysis of the economics of the AmmLeach® process compared with
Copper conventional acid leaching for high acid consuming copper ores is dependent
Copper is the world’s most important base metal by value and its price upon a multitude of parameters specific to the mineralogy of the deposit and
is a bellwether of world industrial production. Approximately 20% of global its location. Suffice it to say that the capital and operating cost savings can be
mined copper production is produced from oxide ores using leaching, major, particularly for high acid consuming ore bodies located in remote
solvent extraction and electrowinning (SX-EW) hydrometallurgy. Alexander locations with long transport distances. This is because the safe supply of
believes that its proprietary leaching technology has the potential to increase sulphuric acid is logistically difficult and expensive as the transport costs of
significantly the share of global copper produced using hydrometallurgical bulk chemicals in-country to site can be as much again as, or more than, the
processes. Hydrometallurgical recovery of copper is much more attractive free-on-board cost.
to mine owners than the production of concentrates from sulphide ores as it
results in the production of high value cathodes at the mine. When sold these In many instances, economics will dictate that the mine will have to build
realise almost 100% of the copper content, compared to concentrates where an expensive sulphur burning sulphuric acid plant for the supply of acid.
owners may receive as little as 60% of the copper value. In addition, to regulate supply variations and for acid plant maintenance, acid
storage tanks for around one month’s consumption, whether the mine makes
The capability of tailoring the rate of recovery is an important feature of the its own or buys in acid, will be required, significantly adding to the capital
AmmLeach® process and allows the plant to operate more flexibly with the rate cost. As well as a substantial capital cost saving, this is where AmmLeach®
of leaching matched to the operating capacity of the solvent extraction plant. has a major operating cost advantage too, due to an order of magnitude
A scoping study indicated that it is possible to convert an acid heap leach reduction in reagent consumption per tonne of ore processed.
operation directly to an AmmLeach® with minimal capital expenditure.

04 Alexander Mining plc Annual Report &  Accounts 2014

Strategic Report

Review of Operations
continued

For example, for even a moderately high acid consuming ore, ten to fifteen times Further development of the zinc process has led to a new solvent extraction
as much acid (50kg/t) as ammonia will be consumed. This is due to the process for zinc from ammoniacal solutions, for which several patents have
fundamental difference between the two leaching processes in that whereas acid been granted and further patents are pending. This patent application is for
is consumed by gangue minerals during leaching, ammonia is not. The reagent is the recovery of zinc from ores which do not require pre-treatment before
recycled and only relatively small losses of ammonia need to be made up. ammoniacal leaching. A patent covering a process allowing selective leaching
of zinc from sideritic zinc ores has also been granted.
Capital cost comparisons for the AmmLeach® technology and conventional
acid leaching assume that certain aspects are common to both leach Because of the tailored pre-treatment step, almost any ore type is amenable
systems i.e. mining, mine infrastructure, mine waste disposal, process plant to the AmmLeach® process. Thus far, it has been demonstrated on
residue disposal, project buildings (administration, laboratories, workshop, predominantly oxide ores but many sulphide ores have also been shown to
warehouse etc.), site access roads, the power transmission line and the water leach after appropriate pre-treatment. This advance allows the treatment of
supply line. Hence any comparison is limited to the process plant itself. mixed oxide-sulphide ores which are often present in the transition from
weathered to un-weathered ore. As a project proceeds, the AmmLeach®
Typically for copper only oxide ores, process plant capital costs for process can be modified to cope with the changing mineralogy from oxide
AmmLeach® and acid heap leach operations of the same size are similar as, to sulphide without substantial capital expenditure.
excluding reagent production and storage/handling costs on site, essentially
the same equipment is used for both processes. However, importantly, where Polymetallic ores can also be processed by AmmLeach® with separation
economics dictate that sulphuric acid is made on site, there can be a major achieved using solvent extraction to separate metals and produce multiple
differential associated with reagents and, in particular, the differential costs of revenue streams. The minimisation of ammonia transfer allows these metals
ammonia and sulphuric acid. to be recovered directly from their strip solution by precipitation, crystallisation
or electro-winning.
The AmmLeach® process can achieve much higher copper solution
concentrations in the pregnant leach solution (PLS) than are typically seen in The alkaline conditions used in the AmmLeach® process allow precious
acid plants. Typical copper concentrations for an acid leaching operation are metals to be recovered from the base metal depleted heap using a secondary
of the order of 1-2g copper (Cu)/L compared to PLS concentrations for the leach step. The heap can simply be washed to recover ammonia and subjected
AmmLeach® process of 6-12g Cu/L. This, coupled to the much greater to standard alkaline cyanidation to recover gold and silver. The incorporation
copper transfer in solvent extraction, allows the efficient handling of high of precious metals recovery within the AmmLeach® process is being
copper tenors in PLS (in acid plants this would necessitate larger volume investigated and preliminary work on the leaching of cyanide consuming
mixer-settlers due to the higher volume of PLS and lower transfer between metals prior to precious metal leaching with cyanide looks highly promising.
aqueous and organic phases); i.e. more metal produced per unit size of plant
than in a corresponding acid leach-SX-EW plant. HyperLeach® process
The HyperLeach® process (patents granted and pending), although less
Moreover, in ores where cobalt is a valuable by/co-product (e.g. DRC and advanced, has significant potential. HyperLeach® may be suitable for the
Zambia), AmmLeach® offers additional significant capital and operating cost extraction of metals, especially copper, zinc, nickel, cobalt, molybdenum and
savings. This is because in the case of the acid leach circuit the cobalt rhenium from sulphide ore deposits and concentrates. The process utilises
recovery circuit is complex in that the main leach solubilises a range of chlorine based chemistry to solubilise metals from ores under ambient
metals. The raffinate bleed will therefore contain unextracted copper, iron temperature and pressure conditions. The HyperLeach® process can be
(both ferrous and ferric), manganese and aluminium. Other species may also operated as either heap leach or tank leach.
be present and these will need to be examined and potentially dealt with as
well. Such metals include nickel and cadmium. For the production of metal Great promise has been shown for molybdenum–rhenium sulphide ores
a multiplicity of unit operations are required ahead of cobalt metal production. with low reagent consumption which could make heap leaching of such ores
economically feasible for the first time. Low grade nickel sulphide ores have
In the case of the alkaline leach circuit, the requirements for purification ahead also shown great promise with high metal recoveries being achieved during
of final cobalt recovery are much less complex. The leach itself is highly agitated leaches. Preliminary work has indicated that heap leaching may be
selective for copper and cobalt since not all metals are soluble in ammoniacal possible for some ores. This allows the treatment of ores which are too low
solutions. In this respect there is negligible iron, silica, calcium, aluminium and grade to process via the conventional, grind, float and smelt route.
manganese present in the liquor. A number of possibilities exist for recovery of
cobalt from the ammoniacal solution. Work in an independent laboratory has resulted in further scale-up data on
the leaching of copper sulphide concentrates to produce copper metal at the
Commercialisation of AmmLeach® mine site. These results have shown that it is possible to leach the majority of
The following metal ores are particular targets for the commercialisation copper from chalcopyrite concentrates whilst leaving a residue which is
of the AmmLeach® process: saleable as a smelter feed. Further work on heap leaching low grade copper
• Copper and copper/cobalt oxide deposits sulphide ores is planned.
• Zinc oxide deposits
• Copper-gold and zinc-silver ores (AmmLeach® followed by HyperLeach® can be used as a pre-treatment for AmmLeach® to provide the
cyanide leaching) best of both processes. HyperLeach® solubilises and mobilises target metals
from sulphides with AmmLeach® leaching the target metals selectively. This
Geographic diversification is offered as the countries with the most combination would allow processing of a whole ore body from the oxide cap
prospective geology for hosting high acid consuming copper (Cu), cobalt (Co) through the transition zone to the sulphide basement in a single plant with
and zinc (Zn) oxides are Chile (Cu), Peru (Zn), Mexico (Zn), Central America only small changes during the lifetime of the orebody.
(Zn), USA (Cu), Democratic Republic of the Congo (Cu, Cu/Co), Zambia (Cu),
Turkey (Zn, Cu) and Australia (Cu).

Of these, the copper process has already been demonstrated at pilot plant
scale for heap leaching and at bench scale for agitated leaching. The cobalt
(or copper and cobalt oxide ore) process has been small pilot scale tested The Strategic Report, as set out on pages 01 to 06,
successfully for agitated leaching and at bench scale for heap leaching. has been approved by the Board.

On behalf of the Board

T A  Cross
Company Secretary
10 April 2015

05 Alexander Mining plc Annual Report &  Accounts 2014

Strategic Report

Corporate and Social

Responsibility
The Group’s core values are: Corporate governance
• To be a good corporate citizen, demonstrating integrity in each The Board intends that, so far as is relevant for a group of its size and stage
business and community in which we operate of development, it will continue to maintain best practice governance.
• To be open and honest in all our dealings, while respecting The Board has established appropriately constituted Audit and Remuneration
commercial and personal confidentiality Committees with formally delegated responsibilities.
• To be objective, consistent and fair with all our stakeholders
• To respect the dignity and wellbeing of all our stakeholders and The Board of Directors
all those with whom we are involved The Board of Directors currently comprises six members, including two
• To operate professionally in a performance-orientated culture executive directors and four non-executive directors. The Board has a
and be committed to continuous improvement wealth of both corporate finance and mining experience, from exploration,
development and through to production. The structure of the Board ensures
Our Stakeholders that no one individual or group dominates the decision making process.
We are committed to developing mutually beneficial partnerships with Board meetings are held regularly to provide effective leadership and overall
our stakeholders throughout the life cycle of our activities and operations. management of the Group’s affairs through the schedule of matters reserved
Our principal stakeholders include our shareholders; employees, their families, for Board decisions. This includes the approval of the budget and business
and employee representatives; the communities in which we operate; plan, major capital expenditure, acquisitions and disposals, risk management
our business partners and local and national governments. policies and the approval of financial statements. All directors have access to
the advice and services of the Company’s solicitors and the Company
Environmental Policy Secretary, who is responsible for ensuring that all Board procedures are
The Group is aware of the potential impact that its operations may have followed. Any director may take independent professional advice at the
on the environment. It will ensure that all of its activities and operations Company’s expense in the furtherance of their duties.
have the minimum environmental impact possible.
The Audit Committee
The Group intends to meet or exceed international standards of excellence The Audit Committee, which meets not less than twice a year, considers the
with regard to environmental matters. Our operations and activities will be in Group’s financial reporting (including accounting policies) and internal financial
compliance with applicable laws and regulations. We will adopt and adhere controls. The Audit Committee, which comprises Mr E Morfett (Chairman) and
to standards that are protective of both human health and the environment. Mr R Davey, receives reports from management and the external auditor to
For our operations we will develop and implement closure and reclamation enable it to fulfil its responsibility for ensuring that the financial performance
plans that provide for long-term environmental stability and suitable post- of the Group is properly monitored and reported on. In addition, it keeps
mining beneficial land-uses at all relevant sites. under review the scope, cost and results of the external audit, and the
independence and objectivity of the external auditor.
Each employee (including contractors) will be held accountable for ensuring
that those employees, equipment, facilities and resources within their area The Remuneration Committee
of responsibility are managed to comply with this policy and to minimise The Remuneration Committee, which meets when necessary, is responsible
environmental risk. for making recommendations to the Board on directors’ and senior
executives’ remuneration. The Committee comprises Mr R Davey (Chairman)
Ethical Policy and Mr J Bunyan. Non-executive directors’ remuneration and conditions are
The Group is committed to comply with all laws, regulations, standards and considered and agreed by the Board.
international conventions which apply to our businesses and to our relationships
with our stakeholders. Where laws and regulations are non-existent or Financial packages for executive directors are established by reference to
inadequate, we will maintain the highest reasonable standards appropriate. those prevailing in the employment market for executives of equivalent status
We will in an accurate, timely and verifiable manner, consistently disclose both in terms of level of responsibility of the position and their achievement of
material information about the Group and its performance. This will be readily recognised job qualifications and skills. The Committee will also have regard
understandable by appropriate regulators, our stakeholders and the public. to the terms which may be required to attract the equivalent experienced
executive to join the Board from another company.
The Group complies and will continue to comply to the fullest extent with
current and future anti-bribery legislation. Internal Controls
The directors acknowledge their responsibility for the Group’s systems of
We will endeavour to ensure that no employee acts in a manner that would internal controls and for reviewing their effectiveness. These internal controls
in any way contravene these principles. The Group will take the appropriate are designed to safeguard the assets of the Group and to ensure the reliability
disciplinary action concerning any contravention. of financial information for both internal use and external publication. Whilst the
directors acknowledge that no internal control system can provide absolute
Community Policy assurance against material misstatement or loss, they have reviewed the
The Group’s aim is to have a positive impact on the people, cultures and controls that are in place and are taking the appropriate action to ensure that
communities in which it operates. It will be respectful of local and indigenous the systems continue to develop in accordance with the growth of the Group.
people, their values, traditions, culture and the environment. The Group will
also strive to ensure that surrounding communities are informed of, and where Relations with Shareholders
possible, involved in, developments which affect them, throughout the life The Board attaches great importance to maintaining good relations with its
cycle of our operations. It will undertake social investment initiatives in the shareholders. Extensive information about the Group’s activities is included
areas of need where we can make a practical and meaningful contribution. in the Annual Report and Accounts and Interim Reports, which are sent to
all shareholders. Market sensitive information is regularly released to all
Labour Policy shareholders concurrently in accordance with stock exchange rules.
The Group is committed to upholding fundamental human rights and, The Annual General Meeting provides an opportunity for all shareholders to
accordingly, we seek to ensure the implementation of fair employment communicate with and to question the Board on any aspect of the Group’s
practices. The Group will also commit to creating workplaces free of activities. The Company maintains a corporate website where information on
harassment and unfair discrimination. the Group is regularly updated and all announcements are posted as they are
released. The Company welcomes communication from both its private and
Health and Safety Policy institutional shareholders.
The Group is committed to complying with all relevant occupational health
and safety laws, regulations and standards. In the absence thereof, standards Share dealing
reflecting best practice will be adopted. The Company has adopted a share dealing code for directors and relevant
employees in accordance with the Rules of the Alternative Investment Market
(‘AIM’) of the London Stock Exchange and will take proper steps to ensure
compliance by the directors and those employees.

06 Alexander Mining plc Annual Report &  Accounts 2014

Corporate Governance

Directors

Matt Sutcliffe Emil Morfett

Executive Chairman Non-Executive Director
Matt Sutcliffe graduated from the University of Nottingham in 1990 with a PhD Emil Morfett, who joined the board in 2007, has over 30 years’ of relevant,
in mining engineering. He is also a chartered engineer and worked as a experience, with eight years in the mining industry and twenty years in mining
mining engineer in underground nickel mines from 1990 to 1994 with Inco finance. He graduated with a [Link]. in geology from the University of London
Limited, within its Manitoba division. He has additional experience in operating and worked for Rio Tinto in Saudi Arabia. As a mature student, he completed
gold and coal mines gained whilst working with Gencor and British Coal. an [Link]. in mineral exploration at Queens University, Ontario, Canada.

For 10 years before founding Alexander, he worked in the City of London as He then worked in Johannesburg for Goldfields of South Africa. In 1987,
a mining analyst and corporate financier specialising in the resources sector. he moved to London to work as a mining analyst. In 1993 he became the
During this time he was a mining analyst at T Hoare & Co, head of mining at Global Head of Mining Research at Bank Paribas and left in 1997 to become
Williams de Broe and a director of corporate finance at Evolution Beeson Vice President and Head of Mining Research for J P Morgan in London.
Gregory (now Evolution Securities). At Evolution Beeson Gregory, he advised
a large number of public natural resources companies, as well as arranging In 2001, he founded his own consulting business (Millstone Grit Limited,
a number of equity listings for junior and mid-tier mining and oil and gas of which he is Managing Director), providing both equity and debt focused
companies on AIM. Whilst at both Williams de Broe and Evolution Beeson mining research and strategic advice. He continues to provide independent,
Gregory, he was recognised as one of the industry pioneers for listing mining bespoke research and financial analysis of mining companies and projects
companies on AIM. to select hedge funds, merchant banks and mining companies.

Martin Rosser James Bunyan

Chief Executive Officer Non-Executive Director
Martin Rosser is a chartered mining engineer and FIMMM who has 33 years’ James Bunyan, who joined the board in April 2005, holds an MBA from
practical industry and financial markets experience since graduating with a Warwick University and a BSc in Biochemistry from Heriot-Watt. He specialises
degree in mining engineering from the Camborne School of Mines in 1981. in corporate development with international business development across a
Initially, he spent five years working as a mining engineer in Australia, both broad range of industrial and commercial sectors worldwide.
on underground and surface gold mines, including time with Western Mining
Corporation at Central Norseman. In 1987, he returned to the UK and worked He has proven business skills in strategic business planning, mergers,
as a mining analyst with two City stockbrokers. acquisitions, disposals, turnarounds and fundraising, with particular
experience in mining. He was for five years a director of Tiberon Minerals Ltd,
He then joined the natural resources industry specialist firm of David which developed the Nui Phao deposit in Vietnam from an exploration
Williamson Associates Limited in 1989 as a founder employee, and concept to one of the largest tungsten polymetallic deposits in the world.
subsequently Managing Director. During this time, until joining Alexander in Nui Phao, together with a bankable feasibility study, was sold to Dragon
June 2005, he provided extensive corporate finance advisory and arranger Capital for over US$350m. It is now a successful operating mine.
services to the firm’s worldwide natural resources industry clients.
Alan Clegg
From 2002, until its takeover by Lonmin plc in January 2007, he was a Non-executive Director
non-executive director of TSX listed AfriOre Limited. Alan Clegg is a mining engineer with British and South African citizenship and
is a resident of Turkey. He has over 35 years’ experience gained from working
Roger Davey in mining and minerals projects in more than 160 countries. This has been as
Non-Executive Director team leader or a member of teams that have completed feasibility studies
Roger Davey is a chartered mining engineer and a graduate of the Camborne and/or constructed over sixty mining and mineral projects with a combined
School of Mines, with over 30 years’ experience in the mining industry. For 13 value in excess of US$8bn over the last twenty years. He was a founder,
years, until the end of 2010, he was an Assistant Director and the Senior Executive Manager and Chief Consulting Engineer of the Mining Engineering
Mining Engineer at N M Rothschild (London) in the Mining and Metals project Consulting group within the TWP Holdings Ltd Consulting engineering
finance team, where he had responsibility for the assessment of the technical consultancy practice, a major provider of engineering design, procurement,
risks associated with project loans. construction management and asset services largely within the mining sector.
The TWP Holdings group was recently acquired and is now part of the Worley
Mr Davey was appointed to the board of Alexander in August 2006. Prior to Parsons Group, one of the leading global providers of technical, project and
this, his experience covered the financing, development and operation of both operational support services to the mining and energy sectors.
underground and surface mining operations in gold and base metals at senior
management and director level in South America, Africa and the United He is a registered Professional Mining Engineer ([Link]), a registered
Kingdom. This includes, from 1994 – 1997, being the General Manager of Professional Construction Project Manager ([Link]) and a registered Project
Minorco (AngloGold) subsidiaries in Argentina, where he was responsible for Management Professional (PMP). He has professional Fellowship status with
the development of the US$270m Cerro Vanguardia gold-silver mine. the South African Institute of Mining & Metallurgy (FSAIMM) and the Institute
of Quarrying (FIOQ), as well as professional memberships of most of the major
mining institutes globally. He is a recognised mining technical assessment,
reporting and mining project valuation expert, with key experience in stock
exchange listings and the requirements for successful capital raising having
sat on the boards of several international and multinational mining,
engineering, mining equipment and construction sector companies.

07 Alexander Mining plc Annual Report &  Accounts 2014

Corporate Governance

Directors’ Report

The directors present their report and the audited consolidated financial Going concern
statements for the year ended 31 December 2014. Based on a review of the Group’s budgets and cash flow forecasts,
the directors have identified that if current and near-term corporate
Principal activities development opportunities are unsuccessful in providing adequate funding
The principal activity of the Group is the commercialisation of the Group’s then the Company will need to raise finance within the next twelve months
proprietary mineral processing technologies, either through licensing to third in order to continue its operations and to meet its commitments.
parties and/or the acquisition of equity stakes in amenable deposits.
In common with many mining, exploration and intellectual property
Results development companies, the Company needs to raise finance for its activities
The Group made a consolidated net loss for the year of £910,000 (2013: in discrete tranches to finance its activities for limited periods. The Directors
£1,365,000). The directors do not recommend the payment of a dividend are confident that the Company currently has a range of corporate
(2013: nil). development opportunities, which could include significant funding outcomes
and moreover that, if necessary, any further funding can be raised as and
Research and development when required. (Accordingly, attention is drawn to Note 24, Post Balance
The Group, through its wholly owned subsidiary MetaLeach Limited is Sheet events, where details of potential significant business development
involved in the ongoing research and development of its proprietary mineral funding opportunities are provided). On this basis, the Directors have
processing technologies, AmmLeach® and HyperLeach®. Further details concluded that it is appropriate to draw up the financial statements on the
thereof are set out in the Strategic Report on pages 01 to 06. going concern basis. However, there can be no certainty that either
development opportunities or alternative funding will be secured in the
Risk Management and Financial Risks necessary timescales. This indicates the existence of a material uncertainty
The successful commercialisation of the Group’s proprietary mineral that may cast significant doubt on the ability of the company and the group
processing technologies is subject to a number of risks, both in relation to to continue as a going concern and therefore, that it may be unable to realise
third party licensing opportunities and the acquisition of equity interests in its assets and discharge its liabilities in the normal course of business.
amenable deposits for the Group. In addition, like all businesses, the Group is The financial statements do not include the adjustments that would result
exposed to financial risks. The Board adopts a prudent approach to minimise if the Company and Group were unable to continue as a going concern.
these risks as far as practicable, consistent with the corporate objectives of
the Group. These risks are summarised below, together with the disclosures Directors
set out in note 18 to the Financial Statements. The directors of the Company who held office during the year and their
beneficial interests in the shares of the Company at the year-end were
Currency exchange risk as follows:
The Group reports its financial results in Sterling, while a proportion of the
Group’s costs and revenues are incurred in US Dollars, Australian Dollars, and Shares Shares
New Zealand Dollars. Accordingly, movements in the Sterling exchange rate held at held at
with these currencies could have a detrimental effect on the Group’s results 31 December 31 December
or financial position. 2014 2013
Number Number
Liquidity risk M L Sutcliffe - Executive Chairman 10,906,000 10,906,000
The Group has to date relied upon shareholder funding of its activities. M L Rosser - Chief Executive Officer 925,000 925,000
Development of mineral properties, the acquisition of new opportunities, J S Bunyan - Non-Executive Deputy Chairman - -
or the recovery of royalty/licensing income from third party assets, may be A M Clegg - Non-Executive - -
dependent upon the Group’s ability to obtain further financing through joint R O Davey - Non-Executive - -
ventures, equity or debt financing or other means. Although the Group has E M Morfett - Non-Executive 450,000 450,000
been successful in the past in obtaining equity financing, there can be no 12,281,000 12,281,000
assurance that the Group will be able to obtain adequate financing in the
future or that the terms of such financing will be favourable.
In accordance with the Company’s Articles of Association, Mr M L Rosser
Credit risk and Mr R O Davey will retire by rotation at the Annual General Meeting. Being
The Group has no material credit risk at the date of this report. eligible, Mr Rosser will offer himself for re-election. Mr Davey has indicated
that he will not stand for re-election. Other than their service contracts,
Commodity price risk no director of the Holding Company has a material interest in a contract with
The Group’s proprietary leaching technologies have the potential to reduce the Company. Details of directors’ remuneration are set out in note 6 to the
costs and enhance margins at the mine site. The level of interest from mining financial statements.
companies in commercialisation of the Group’s proprietary leaching
technologies may be affected, for better or worse, by future movements During the year, directors’ and officers’ liability insurance was maintained
in global metal prices. for directors and other officers of the Group as permitted by the Companies
Act 2006.
Strategic and business risks are described in the Strategic Report
on pages 01 to 06. Indemnity granted to Directors and officers by
Company’s Articles of Association
Subject to the provisions of Companies Act 1985 (also applicable under
Companies Act 2006) but without prejudice to any indemnity to which a
Director may otherwise be entitled, every Director or other officer of the
Company (other than any person (whether or not an officer of the Company)
engaged by the Company as auditor) shall be indemnified out of the assets
of the Company against any liability incurred by him for negligence, default,
breach of duty or breach of trust in relation to the affairs of the Company,
provided that this Article shall be deemed not to provide for, or entitle any
such person to, indemnification to the extent that it would cause this Article,
or any element of it, to be treated as void under Companies Act 2006.

08 Alexander Mining plc Annual Report &  Accounts 2014

Corporate Governance

Directors’ Report
continued

The directors’ interests in share options are as follows:

Executive Directors hold options to subscribe for ordinary shares in the Company as follows:

At 31 December 2014 At 31 December 2013

Price Exercise period M L Sutcliffe M L Rosser M L Sutcliffe M L Rosser
4.92p 01/06/13 - 22/12/20 1,500,000 2,700,000 1,500,000 2,700,000
Total 1,500,000 2,700,000 1,500,000 2,700,000

Non-executive Directors hold options to subscribe for ordinary shares in the Company as follows:

At 31 December 2014 At 31 December 2013

Price Exercise period J S Bunyan A M Clegg R O Davey E M Morfett J S Bunyan A M Clegg R O Davey E M Morfett
4.92p 01/06/13 - 22/12/20 800,000 800,000 800,000 800,000 800,000 800,000 800,000 800,000
Total 800,000 800,000 800,000 800,000 800,000 800,000 800,000 800,000

At 31 December 2014 At 31 December 2013

All directors All directors
Total - all directors 7,400,000 7,400,000

Details of the Company’s substantial shareholders are set out on the In preparing these financial statements, the directors are required to:
Company’s website at [Link].
• select suitable accounting policies and then apply them consistently;
Share capital and share options • make judgements and accounting estimates that are reasonable
Details of the share capital of the Company at 31 December 2014 are set out and prudent;
in note 15 to the financial statements. Details of the share options outstanding • state whether they have been prepared in accordance with IFRSs as
at 31 December 2014 are set out in note 20 to the financial statements. adopted by the European Union, subject to any material departures
disclosed and explained in the financial statements; and
Post Balance Sheet Events • prepare the financial statements on the going concern basis unless it
Details of post balance sheet events are set out in note 24 to the is inappropriate to presume that the company will continue in business.
financial statements.
The directors are responsible for keeping adequate accounting records that
Stock Exchange are sufficient to show and explain the company’s transactions and disclose
The Company’s shares are quoted on the AIM market of the London Stock with reasonable accuracy at any time the financial position of the company
Exchange (symbol AXM). and enable them to ensure that the financial statements comply with the
requirements of the Companies Act 2006. They are also responsible for
Annual General Meeting safeguarding the assets of the company and hence for taking reasonable
The Notice convening the Company’s Annual General Meeting, to be held steps for the prevention and detection of fraud and other irregularities.
on 13 May 2015, is set out in pages 29 to 30 of this report. Full details of
the resolutions proposed at that meeting may be found in the Notice. Website publication
The directors are responsible for ensuring the annual report and the financial
Provision of information to auditor statements are made available on a website. Financial statements are
In the case of each of the directors who are directors of the Company published on the Company’s website in accordance with legislation in the
at the date when this report is approved: United Kingdom governing the preparation and dissemination of financial
statements, which may vary from legislation in other jurisdictions.
• So far as they are individually aware, there is no relevant audit information The maintenance and integrity of the Company’s website is the responsibility
of which the Company’s auditor is unaware; and of the directors. The directors’ responsibility also extends to the ongoing
• Each of the directors has taken all the steps that they ought to have integrity of the financial statements contained therein.
taken as a director to make themself aware of any relevant audit
information and to establish that the Company’s auditor is aware By Order of the Board
of the information.

Auditor
A resolution to re-appoint BDO LLP as auditor of the company will be
put to the Annual General Meeting.

Statement of directors’ responsibilities Terence Cross

The directors are responsible for preparing the strategic report, the directors’ Company Secretary
report and the financial statements in accordance with applicable law and 10 April 2015
regulations.

Company law requires the directors to prepare financial statements for each
financial year. Under that law the directors have elected to prepare the Group
and Company financial statements in accordance with International Financial
Reporting Standards (IFRSs) as adopted by the European Union. Under
company law the directors must not approve the financial statements unless
they are satisfied that they give a true and fair view of the state of affairs of the
Group and Company and of the profit or loss of the Group for that period.
The directors are also required to prepare financial statements in accordance
with the rules of the London Stock Exchange for companies trading securities
on the Alternative Investment Market.

09 Alexander Mining plc Annual Report &  Accounts 2014

Corporate Governance

Independent auditor’s report

to the members of Alexander Mining plc

We have audited the financial statements of Alexander Mining plc for the Emphasis of matter - going concern
year ended 31 December 2014 which comprise the consolidated income In forming our opinion, which is not modified, we have considered the
statement, the consolidated statement of comprehensive income, the adequacy of the disclosures made in note 2(a) to the financial statements
consolidated and company balance sheets, the group and company concerning near-term corporate developments and the possibility that the
statement of cash flows, the consolidated and company statements of company may need to raise further finance within the next twelve months in
changes in equity and the related notes. The financial reporting framework order to continue its operations and to meet its commitments. If the company is
that has been applied in their preparation is applicable law and International unable to secure such additional funding, this may have a consequential impact
Financial Reporting Standards (IFRSs) as adopted by the European Union on the company’s and the group’s ability to continue as a going concern.
and, as regards the parent company financial statements, as applied in
accordance with the provisions of the Companies Act 2006. The outcome of any corporate developments or fundraising cannot presently
be determined. These conditions, along with the other matters explained in
This report is made solely to the company’s members, as a body, in note 2(a) to the financial statements, indicate the existence of a material
accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit uncertainty which may cast significant doubt about the Company’s and the
work has been undertaken so that we might state to the company’s members Groups’ ability to continue as a going concern. The financial statements do
those matters we are required to state to them in an auditor’s report and for not include the adjustments that would result if the Company and Group was
no other purpose. To the fullest extent permitted by law, we do not accept or unable to continue as a going concern.
assume responsibility to anyone other than the company and the company’s
members as a body, for our audit work, for this report, or for the opinions we Opinion on other matters prescribed by the Companies Act 2006
have formed. In our opinion the information given in the strategic report and directors’
report for the financial year for which the financial statements are prepared
Respective responsibilities of directors and auditors is consistent with the financial statements.
As explained more fully in the statement of directors’ responsibilities, the
directors are responsible for the preparation of the financial statements and Matters on which we are required to report by exception
for being satisfied that they give a true and fair view. Our responsibility is to We have nothing to report in respect of the following matters where
audit and express an opinion on the financial statements in accordance with the Companies Act 2006 requires us to report to you if, in our opinion:
applicable law and International Standards on Auditing (UK and Ireland).
Those standards require us to comply with the Financial Reporting Council’s • adequate accounting records have not been kept by the parent company,
(FRC’s) Ethical Standards for Auditors. or returns adequate for our audit have not been received from branches
not visited by us; or
Scope of the audit of the financial statements • the parent company financial statements are not in agreement with
A description of the scope of an audit of financial statements is provided the accounting records and returns; or
on the FRC’s website at [Link]/auditscopeukprivate. • certain disclosures of directors’ remuneration specified by law are
not made; or
Opinion on financial statements • we have not received all the information and explanations we require
In our opinion: for our audit.

• the financial statements give a true and fair view of the state of the
group’s and the parent company’s affairs as at 31 December 2014
and of the group’s loss for the year then ended;
• the group financial statements have been properly prepared
in accordance with IFRSs as adopted by the European Union;
• the parent company financial statements have been properly prepared Jason Homewood (senior statutory auditor)
in accordance with IFRSs as adopted by the European Union and as For and on behalf of BDO LLP, statutory auditor
applied in accordance with the provisions of the Companies Act 2006; London
and United Kingdom
• the financial statements have been prepared in accordance 10 April 2015
with the requirements of the Companies Act 2006.
BDO LLP is a limited liability partnership registered in England and Wales
(with registered number OC305127).

10 Alexander Mining plc Annual Report &  Accounts 2014

Financial Statements

Consolidated income statement

For the year ended 31 December 2014

2014 2013
notes £’000 £’000
Continuing operations
Revenue 4 507 26
Cost of sales - -

Gross profit 507 26

Administrative expenses (989) (1,010)
Research and development expenses (367) (390)
Profit on disposal of property, plant and equipment - 4

Operating loss 4 (849) (1,370)

Finance income 7 1 5

Loss before taxation (848) (1,365)

Income tax expense 8 - -

Loss for the year from continuing operations (848) (1,365)

Loss for the year from discontinued operations 12 (62) -

Loss for the year (910) (1,365)

Basic and diluted loss per share (pence):

from continuing operations 9 (0.48)p (0.84)p
from continuing and discontinued operations 9 (0.52)p (0.84)p
from discontinued operations 9 (0.04)p -

All components of profit or loss for the year are attributable to equity holders of the parent.

Consolidated statement of comprehensive income

For the year ended 31 December 2014

2014 2013
£’000 £’0 N00
Loss for the year (910) (1,365)

Other comprehensive income:

Items that will or may be reclassified to profit or loss:
Exchange differences on translating foreign operations - (1)
Exchange differences realised on disposal of subsidiary 61 -

Total comprehensive loss for the year attributable to equity holders of the parent (849) (1,366)

11 Alexander Mining plc Annual Report &  Accounts 2014

Financial Statements

Consolidated balance sheet

As at 31 December 2014

2014 2013
notes £’000 £’000
Assets
Property, plant and equipment 10 - -

Total non-current assets - -

Trade and other receivables 13 67 60

Cash and cash equivalents 14 116 398

Total current assets 183 458

Total assets 183 458

Equity attributable to owners of the parent

Issued share capital 15 13,639 13,633
Share premium 15 13,298 13,020
Translation reserve - (61)
Accumulated losses (27,211) (26,423)

Total equity (274) 169

Liabilities
Current liabilities
Trade and other payables 16 439 289
Provisions 17 18 -

Total current liabilities 457 289

Total liabilities 457 289

Total equity and liabilities 183 458

These financial statements were approved by the Board of Directors and authorised for issue on
10 April 2015 and were signed on their behalf by:

M L Rosser
Director

12 Alexander Mining plc Annual Report &  Accounts 2014

Financial Statements

Company balance sheet

Company number 5357433 in England and Wales
As at 31 December 2014

2014 2013
notes £’000 £’000
Assets
Property, plant and equipment 10 - -

Total non-current assets - -

Trade and other receivables 13 67 61

Cash and cash equivalents 14 116 396

Total current assets 183 457

Total assets 183 457

Equity attributable to owners of the parent

Issued share capital 15 13,639 13,633
Share premium 15 13,298 13,020
Accumulated losses (26,955) (26,309)

Total equity (18) 344

Liabilities
Trade and other payables 16 183 113
Provisions 17 18 -

Total current liabilities 201 113

Total liabilities 201 113

Total equity and liabilities 183 457

These financial statements were approved by the Board of Directors and authorised for issue on
10 April 2015 and were signed on their behalf by:

M L Rosser
Director

13 Alexander Mining plc Annual Report &  Accounts 2014

Financial Statements

Statements of cash flows

For the year ended 31 December 2014

Group Company

2014 2013 2014 2013

notes £’000 £’000 £’000 £’000
Cash flows from operating activities
Operating loss – continuing operations (849) (1,370) (304) (776)
Operating loss – discontinued operations (1) - - -
Depreciation and amortisation charge - 8 - 8
Decrease / (Increase) in trade and other receivables (7) 7 (6) (8)
Increase in trade and other payables 150 95 70 1
Increase in provisions 18 - 18 -
Shares issued in payment of expenses 52 69 52 69
Share option charge 21 21 21 21
Profit on disposal of property, plant and equipment - (4) - (4)
Inter-company recharges - - (10) (10)

Net cash outflow from operating activities (616) (1,174) (159) (699)

Cash flows from investing activities

Amounts remitted to subsidiary companies - - (457) (466)
Interest received 1 1 1 1
Proceeds from sale of subsidiary - 101 - 101
Proceeds from sale of property, plant and equipment - 12 - 12

Net cash inflow/(outflow) from investing activities 1 114 (456) (352)

Cash flows from financing activities

Proceeds from the issue of share capital 232 935 232 935
Proceeds from lapsed share issue, net of costs 62 - 62 -
Proceeds from issue of share options 39 - 39 -

Net cash inflow from financing activities 333 935 333 935

Net decrease in cash and cash equivalents (282) (125) (282) (116)
Cash and cash equivalents at beginning of year 398 519 396 518
Exchange differences - 4 2 (6)

Cash and cash equivalents at end of year 14 116 398 116 396

14 Alexander Mining plc Annual Report &  Accounts 2014

Financial Statements

Consolidated statement of changes in equity

For the year ended 31 December 2014

Share Share Shares to Translation Accumulated Total

capital premium be issued reserve losses equity
£’000 £’000 £’000 £’000 £’000 £’000
At 1 January 2013 13,606 12,043 - (60) (25,079) 510

Accumulated loss for year - - - - (1,365) (1,365)

Translation difference - - - (1) - (1)
Total comprehensive loss for the year attributable
to equity holders of the parent - - - (1) (1,365) (1,366)
Share option costs - - - - 21 21
Shares issued 27 977 - - - 1,004

At 31 December 2013 13,633 13,020 - (61) (26,423) 169

Accumulated loss for year - - - - (910) (910)

Realisation of foreign exchange losses upon sale of subsidiary - - - 61 - 61
Total comprehensive loss for the year attributable
to equity holders of the parent - - - 61 (910) (849)
Share option costs - - - - 21 21
Share issue subscription (note 15) - - 100 - - 100
Costs of share issue subscription - - (38) - - (38)
Share issue lapsed - - (62) - 62 -
Share option issued (note 20) - - - - 39 39
Shares issued 6 278 - - - 284

At 31 December 2014 13,639 13,298 - - (27,211) (274)

Company statement of changes in equity

For the year ended 31 December 2014

Share Share Share to Accumulated Total

capital premium be issued losses equity
£’000 £’000 £’000 £’000 £’000
At 1 January 2013 13,606 12,043 - (25,073) 576

Accumulated loss for year - - - (1,257) ( 1,257)

Total comprehensive loss for the year attributable to equity holders of the parent - - - (1,257) (1,257)
Share option costs - - - 21 21
Shares issued 27 977 - - 1,004

At 31 December 2013 13,633 13,020 - (26,309) 344

Accumulated loss for year - - - (768) (768)

Total comprehensive loss for the year attributable to equity holders of the parent - - - (768) (768)
Share option costs - - - 21 21
Share issue subscription (note 15) - - 100 - 100
Costs of share issue subscription - - (38) - (38)
Share issue lapsed - - (62) 62 -
Share option issued (note 20) - - - 39 39
Shares issued 6 278 - - 284

At 31 December 2014 13,639 13,298 - (26,955) (18)

15 Alexander Mining plc Annual Report &  Accounts 2014

Financial Statements

Notes to the Financial Statements

For the year ended 31 December 2014

1 General Information
Alexander Mining plc (the “Company”) is a public limited company incorporated and domiciled in England and its shares are traded on the AIM Market
of the London Stock Exchange. Alexander Mining plc is a holding company of a group of companies (the “Group”), the principal activities of which are the
commercialisation of the Group’s proprietary mineral processing technologies, either through licensing to third parties and/or the acquisition of equity stakes
in amenable deposits.

These consolidated financial statements were approved for issue by the Board of Directors on 10 April 2015.

2 Summary of significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been applied consistently
to all the years presented, unless otherwise stated.

a) Basis of preparation
The financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRSs”) in force at the reporting date and their
interpretations issued by the International Accounting Standards Board (“IASB”) as adopted for use within the European Union.

The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the
application of policies and reported amounts in the financial statements. The areas involving a higher degree of judgement or complexity, or areas where
assumptions or estimates are significant to the financial statements, are disclosed in note 2(o).

A separate income statement for the parent company has not been presented, as permitted by section 408 of the Companies Act 2006.

The financial statements are prepared in accordance with IFRS and interpretations in force at the reporting date. The Company has not adopted any standards
or interpretations in advance of the required implementation dates.

Going Concern
Based on a review of the Group’s budgets and cash flow forecasts, the directors have identified that if current and near-term corporate development
opportunities are unsuccessful in providing adequate funding then the Company will need to raise finance within the next twelve months in order to continue
its operations and to meet its commitments.

In common with many mining, exploration and intellectual property development companies, the Company needs to raise finance for its activities in discrete
tranches to finance its activities for limited periods. The Directors are confident that the Company currently has a range of corporate development opportunities,
which could include significant funding outcomes and moreover that, if necessary, any further funding can be raised as and when required. (Accordingly,
attention is drawn to Note 24, Post Balance Sheet events, where details of potential significant business development funding opportunities are provided).
On this basis, the Directors have concluded that it is appropriate to draw up the financial statements on the going concern basis. However, there can be no
certainty that either development opportunities or alternative funding will be secured in the necessary timescales. This indicates the existence of a material
uncertainty that may cast significant doubt on the ability of the company and the group to continue as a going concern and therefore, that it may be unable to
realise its assets and discharge its liabilities in the normal course of business. The financial statements do not include the adjustments that would result if the
Company and Group were unable to continue as a going concern.

Standards, Amendments and Interpretations issued but not yet effective

No Standards and Interpretations that have been issued but are not yet effective, and that are available for early application, have been applied by the Group
in these financial statements. There are no Standards or Interpretations issued, but not yet effective, which are expected to have a material effect on the financial
statements in the future.

b) Basis of consolidation
i) Subsidiaries
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries)
made up to 31 December each year. Control is recognised where the Company has the power to direct relevant activities, exposure to variable returns
and a right to use the power to affect those returns.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies into line with those used by the Group.

ii) Transactions eliminated on consolidation

Intra-group balances and any unrealised gains and losses or income and expenses arising from intra-group transactions are eliminated in preparing the
consolidated financial statements.

16 Alexander Mining plc Annual Report &  Accounts 2014

Financial Statements

Notes to the Financial Statements

For the year ended 31 December 2014

c) Foreign currency
The Company’s functional and presentational currency is Sterling rounded to the nearest thousand and is the currency of the primary economic environment
in which the Company operates.

i) Foreign currency transactions

Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities
denominated in foreign currencies at the balance sheet date are translated to Sterling at the foreign exchange rate ruling at that date. Foreign exchange
differences arising on translation are recognised in the income statement.

ii) Financial statements of foreign operations

On consolidation, the assets and liabilities of the Group’s overseas operations that do not have a Sterling functional currency are translated at exchange
rates prevailing at the balance sheet date. Income and expense items are translated at the average exchange rate for the year. Exchange differences
arising are recognised in other comprehensive income through the Group’s translation reserve. Such translation differences are recognised in the
income statement in the year in which the operation is disposed of.

iii) Net investment in foreign operations

Exchange differences arising from the translation of the net investment in foreign operations are recognised in other comprehensive income through
the Group’s translation reserve. They are released into the income statement upon disposal of the foreign operation.

d) Property, plant and equipment

i) Owned assets
Items of property, plant and equipment are stated at cost less accumulated depreciation (see below) and impairment losses (see note 2e) below).

ii) Subsequent costs

The Group recognises in the carrying amount of an item of property, plant and equipment the cost of replacing part of such an item when that cost
is incurred if it is probable that the future economic benefits associated with the item will flow to the Group and the cost of the item can be measured
reliably. All other costs are recognised in the income statement as an expense as incurred.

iii) Depreciation
Depreciation is charged to the income statement on a straight-line basis over the estimated useful lives of each item of property, plant and equipment.
The estimated useful lives of all other categories of assets are three years.

The residual value is assessed annually. Gains and losses on disposal are determined by comparing proceeds with carrying amount and are included
in the income statement.

e) Impairment
i) Whenever events or changes in circumstance indicate that the carrying amount of an asset may not be recoverable the asset is reviewed for
impairment. An asset’s carrying value is written down to its estimated recoverable amount (being the higher of the fair value less costs to sell and
value in use) if that is less than the asset’s carrying amount.

ii) Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of
its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no
impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised in the income
statement for the year.

f) Financial instruments
i) Investments
Investments in subsidiary undertakings are stated at cost less provision for impairment.

ii) Trade and other receivables

Trade and other receivables are not interest bearing and are stated at amortised cost.

iii) Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term highly liquid investments with original
maturities of three months or less.

iv) Trade and other payables

Trade and other payables are not interest bearing and are stated at amortised cost.

17 Alexander Mining plc Annual Report &  Accounts 2014

Financial Statements

Notes to the Financial Statements

For the year ended 31 December 2014

g) Share based payment transactions

Directors, senior executives and consultants of the Group have been granted options to subscribe for ordinary shares. All options are equity settled. The fair
value of services received in return for share options granted is measured by reference to the fair value of the share options granted, at date of grant, and is
expensed to the income statement on a straight line basis over the estimated vesting period. This estimate is determined using an appropriate valuation model
considering the effects of the vesting conditions and the expected exercise period.

Shares issued in settlement of expenses are recognised at the fair value of the services received.

All Share Option costs incurred are charged directly to Accumulated Losses.

h) Operating lease payments

Payments made under operating leases are recognised on a straight-line basis over the term of the lease.

i) Share capital
The Company’s ordinary shares are classified as equity.

j) Provisions
Provisions are recognised when the Group has a legal or constructive obligation as a result of past events, it is more likely than not that an outflow of resources
will be required to settle the obligation and the amount can be reliably estimated.

k) Revenue
Revenue comprises the fair value of the consideration received or receivable for the provision of services to or from external customers (net of value-added tax
and other sales taxes).

Sale of testwork services

The group sells services to other mining companies. These services are generally provided on fixed-price contracts, with contract terms usually less than one
year. Revenue is recognised under the percentage-of-completion method, based on the services performed to date as a percentage of the total services to be
performed.

Royalty income
Royalty income is recognised on an accruals basis in accordance with the substance of the relevant agreements.

l) Research and development costs

Research costs are recognised in the income statement as an expense as incurred. Development costs are recognised in the income statement as an expense
as incurred unless the development project meets specific criteria for deferral and amortisation. No development costs have been deferred to date because
there is insufficient information at the balance sheet date to quantify the expected future economic benefits from the proprietary leaching technologies.

m) Taxation
The charge for taxation is based on the profit or loss for the year and takes into account deferred tax. Deferred tax is the tax expected to be payable or
recoverable on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used
in the computation of taxable profit or loss, and is accounted for using the balance sheet method.

Deferred tax assets are only recognised to the extent that it is probable that future taxable profit will be available in the foreseeable future against which
the temporary differences can be utilised.

n) Segment information
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker.

The Chief Operating Decision Maker, responsible for allocating resources and assessing performance of the operating segments, has been identified as
the Board of Directors.

o) Critical accounting estimates and judgements

The preparation of financial statements under the principles of IFRS requires management to make judgements, estimates and assumptions that affect the
application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical
experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements
about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Information about such judgements and estimates is contained in the accounting policies and/or the notes to the financial statements and the key areas are
summarised below. The only area of judgement that has a significant effect on the amounts recognised in the financial statements is:

• Estimation of share based payment costs – notes 2(g) and 20.

18 Alexander Mining plc Annual Report &  Accounts 2014

Financial Statements

Notes to the Financial Statements

For the year ended 31 December 2014

3 Segmental information
The following information is given about the Group’s reportable segments:

The Chief Operating Decision Maker is the Board of Directors. The Board reviews the Group’s internal reporting in order to assess performance of the Group.
Management has determined the operating segment based on the reports reviewed by the Board.

The Board considers that there is only one operating segment. This incorporates similar activities and services, namely Head Office, including the development
and management of intellectual property rights. The results and assets of Peruvian operations, prior to their disposal, were deemed to be immaterial and were
therefore included within the single segment. The analysis has been prepared on the basis that prevailed and was reported to the Board until 31 December 2014.

As the group is in the early stages of developing and licensing a new product, the Board assesses the performance of the business based on the segment’s
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA), and overall loss before tax.

The Head Office and Intellectual Property segment recognises all costs and revenues. This segment is not further sub-divided to different geographical regions
due to its knowledge and services being offered to a broad geographical spread of clients, often indirectly through multinational groups.

As the Company has only a single activity and there is also only one geographical segment, the disclosures for this segment have already been given in
these financial statements.

4 Operating loss
Operating loss is stated after charging/(crediting):

2014 2013
£’000 £’000
Depreciation - 8
Exchange (gain)/loss on foreign currency - (4)
Operating lease expense 46 41
Share option charge (note 20) 21 21
Shares issued in payment of expenses (note 15) 56 69
Research and development expenses 367 390

Revenue is comprised of:

2014 2013
£’000 £’000
Sales of services to third parties 29 26
Inducement fee received (see below) 300 -
Standstill fee received from unnamed ‘mid-tier mining company’ 178 -
507 26

The inducement fee of £300,000 was a non-refundable payment received from Ebullio Commodities Limited in consideration for entering into a series of
agreements with them. Those agreements subsequently lapsed.

A fee of £217,000 was received from an unnamed ‘mid-tier mining company’ in contemplation of a further series of agreements. The £217,000 was allocated
as to a non-refundable standstill fee of £178,000 in respect of a period of exclusivity granted for the period during which it considered entering into the further
agreements, while £39,000 was allocated in respect of the related option to subscribe to the Company’s shares. (See also Chairman’s Statement and review
of the year for details of the option agreement and note 20 for details of the related option payment of £39,000 received in conjunction with the standstill fee).

5 Auditor’s remuneration

2014 2013
£’000 £’000
Fees payable to the Company’s auditor for the audit of parent company and consolidated financial statements 19 20
Tax compliance services 3 6
22 26

19 Alexander Mining plc Annual Report &  Accounts 2014

Financial Statements

Notes to the Financial Statements

For the year ended 31 December 2014

6 Staff costs and directors’ emoluments

Directors’ remuneration is set out below:

Other
Annual salary Fees benefits Total
£’000 £’000 £’000 £’000
2014
M L Sutcliffe 191 - 3 194
M L Rosser 128 - 2 130
J S Bunyan - 40 - 40
A M Clegg - 25 - 25
R O Davey - 25 - 25
E M Morfett - 25 - 25
319 115 5 439

2013
M L Sutcliffe 197 - 4 201
M L Rosser 128 - 2 130
J S Bunyan - 40 - 40
A M Clegg - 21 - 21
R O Davey - 25 - 25
E M Morfett - 25 - 25
325 111 6 442

The directors’ fees detailed above include amounts that remain unpaid and deferred or subordinated in favour of third party creditors (refer to notes 16 and 23).

The aggregate staff costs for the year were as follows:

2014 2013
£’000 £’000
Directors’ remuneration 324 331
Other staff wages and salaries 196 211
Social security costs 28 28
Share based payments 21 21
569 591

On average, excluding non-executive directors, the group employed 3 technical staff members (2013: 3) and 2 administration staff (2013: 2).

7 Finance income

2014 2013
£’000 £’000
Interest on short term bank deposits 1 1
Exchange differences on foreign currency - 4
1 5

20 Alexander Mining plc Annual Report &  Accounts 2014

Financial Statements

Notes to the Financial Statements

For the year ended 31 December 2014

8 Income taxes
No liability to income taxes arises in the year.

The current tax charge for the year differs from the credit resulting from the loss before tax at the standard rate of corporation tax in the UK.
The differences are explained below:

2014 2013
£’000 £’000
Loss before tax (848) (1,364)

Current tax at 21.5% (2013: 23.25%) (182) (317)

Effects of:
Expenses not deductible for tax purposes 147 195
Qualifying depreciation in excess of capital allowances on which no deferred tax has been provided (1) (6)
Unrelieved tax losses arising in the year 36 128
Income tax expense - -

Unrecognised deferred tax assets

2014 2013
£’000 £’000
Cumulative tax losses 1,375 1,384
Unrelieved exploration expenditure arising in overseas subsidiaries - 149
Accelerated capital allowances 5 -
Unrecognised deferred tax asset at end of year 1,380 1,533

Deferred tax assets carried forward have not been recognised in the accounts because there is currently insufficient evidence of the timing of suitable future
taxable profits against which they can be recovered.

9 Loss per share

The calculation of loss per share is based on the weighted average number of shares in issue in the year to 31 December 2014 of 175,087,554
(31 December 2013: 162,053,428) and computed on the respective profit and loss figures as follows:
2014 2013

£’000 Per share £’000 Per share

Loss - continuing operations (848) (0.48)p (1,365) (0.84)p
Loss - discontinued operations (62) (0.04)p - -
Loss - continuing and discontinued operations (910) (0.52)p (1,365) (0.84)p

There is no difference between the diluted loss per share and the basic loss per share presented. Share options granted to employees could potentially
dilute basic earnings per share in the future, but were not included in the calculation of diluted earnings per share as they are anti-dilutive for the year presented.
See note 20 for further details.

21 Alexander Mining plc Annual Report &  Accounts 2014

Financial Statements

Notes to the Financial Statements

For the year ended 31 December 2014

10 Property, plant and equipment

Company and Group

Office
equipment Leasehold Motor
and furniture improvements vehicles Total
£’000 £’000 £’000 £’000
Cost
As at 1 January 2013 37 35 35 107
Disposals - - (35) (35)
As at 31 December 2013 37 35 - 72
As at 31 December 2014 37 35 - 72

Depreciation
As at 1 January 2013 (36) (35) (20) (91)
Charged in year (1) - (7) (8)
Disposals - - 27 27
As at 31 December 2013 (37) (35) - (72)
As at 31 December 2014 (37) (35) - (72)

Net book value

As at 31 December 2014 - - - -

As at 31 December 2013 - - - -

As at 1 January 2013 1 - 15 16

11 Investments
Group Company

2014 2013 2014 2013

£’000 £’000 £’000 £’000
Subsidiary undertakings (a) - - - -

(a) Company subsidiary undertakings

As at 31 December 2014, the Group owned interests in the following subsidiary undertakings, which are included in the consolidated financial statements:

Name Holding Business Activity Country of Incorporation

MetaLeach Limited 100% Leaching technology development British Virgin Islands
Molinetes (BVI) Limited 100% Dormant British Virgin Islands
Alexander Mining Katanga s.p.r.l. 100% Dormant Democratic Republic of Congo

12 Disposal of subsidiary – Discontinued operation

On 10 September 2014, the Company’s subsidiary, Molinetes (BVI) Limited, completed the sale of its entire interest in its subsidiary,
Compania Minera Molinetes SAC for the nominal sum of Peruvian Nuevos Soles 100 (approximately £21). The value of net assets disposed was nil.

The net loss for the year attributed to the discontinued business comprised as follows:

2014 2013
£’000 £’000
Administrative expenses (1) -
Realisation of translation reserve transferred to income statement on disposal of the subsidiary (IAS21) (61) -
Loss for the year on discontinued operations (62) (9)

Other comprehensive income relating to the discontinued and disposed of subsidiary

The cumulative amount transferred to translation reserve in respect of the disposed subsidiary amounted to a debit of £61,000 at 31 December 2013.
This translation reserve was realised by its transfer to the Income Statement on disposal of the subsidiary during the year ended 31 December 2014.

13 Trade and other receivables

Group Company

2014 2013 2014 2013

£’000 £’000 £’000 £’000
Current assets
Other receivables 25 24 25 24
Other taxes and social security 2 3 2 3
Prepayments and accrued income 40 33 40 34
67 60 67 61

Amounts due to the Company from its subsidiary companies have been fully provided for as detailed in note 23.

22 Alexander Mining plc Annual Report &  Accounts 2014

Financial Statements

Notes to the Financial Statements

For the year ended 31 December 2014

14 Cash and cash equivalents

Cash and cash equivalents consist of cash on hand, demand deposits and short term deposits. Cash and cash equivalents included in the cash flow statement
comprise the following balance sheet amounts:
Group Company

2014 2013 2014 2013

£’000 £’000 £’000 £’000
Cash on hand and demand deposits 116 398 116 396

15 Share capital

2014 2013
Issued and fully paid ordinary shares with a nominal value of 0.1p (2013 0.1p)

Number of shares 176,319,379 170,496,861

Nominal value (£) 176,319 170,497

Issued and fully paid deferred shares with a nominal value of 9.9p

Number of shares 135,986,542 135,986,542

Nominal value (£) 13,462,667 13,462,667
Total nominal value (£) 13,638,986 13,633,164

Details of share options issued during the year and outstanding at 31 December 2014 are set out in note 20.

Changes in issued Share Capital and Share Premium:

For the year ended 31 December 2014

Number of Share Share

Ordinary shares shares capital premium Total
£’000 £’000 £’000
Balance at 1 January 2014 170,496,861 170 13,020 13,190
Shares issued for cash at 5.25p each, on 19 February 4,604,762 5 237 242
Share issue costs charged to share premium, on 19 February - - (14) (14)
Shares issued at average of 5.16p each - in settlement of expenses, on 19 February 487,387 - 25 25
Shares issued at 3.375p each - in settlement of expenses, on 24 September 311,111 - 10 10
Shares issued at 5.068p each - in settlement of expenses, on 24 September 419,258 1 20 21

Balance at 31 December 2014 176,319,379 176 13,298 13,474

Deferred
Number of share
Deferred shares shares capital
£’000
Balance at 1 January 2014 and 31 December 2014 135,986,542 13,463

Lapsed share issue

During February 2014 the Company received a non-refundable payment of £100,000 on account of the proposed issue of shares to Ebullio Commodities
Limited. That agreement subsequently lapsed. After deduction of the Company’s legal costs of £38,000 related to the proposed issue, the balance of £62,000
was transferred directly to accumulated losses (see statements of changes in equity on page 15 of this report).

Capital and reserves

The Consolidated and Company statements of changes in equity are set out on page 15 of this report.
• The translation reserve comprises all foreign exchange differences arising from the translation of the financial statements of foreign operations that do not
have a Sterling functional currency. The prior year reserve balance of £61,000 related entirely to the operations of Compania Minera Molinetes SAC and
was transferred to the Income Statement upon the sale of that subsidiary on 10 September 2014 (see note 12).

23 Alexander Mining plc Annual Report &  Accounts 2014

Financial Statements

Notes to the Financial Statements

For the year ended 31 December 2014

16 Trade and other payables

Group Company

2014 2013 2014 2013

£’000 £’000 £’000 £’000
Trade payables 46 31 46 31
Other taxes and social security 2 5 2 5
Accruals and deferred income 391 253 135 77
439 289 183 113

Accruals and deferred income included £331,000 (2013: £206,000) owed to directors of the Company (see note 23) and £11,582 (2013: £nil) owed to senior
staff members, in respect of directors’ fees or remuneration. In terms of subordination agreements signed during August 2014 between the Company and the
individuals concerned, these and similarly remaining future balances may not be claimed for payment at any time when the Group’s third party creditor liabilities
exceed its cash or liquid assets.

Fee deferral agreements signed between the Company and the directors on 1 January 2015 deferred amounts owed to directors, totalling £314,000,
which may not be claimed for payment before 1 July 2016.

17 Provisions
Office dilapidation and redecoration
The office redecoration provision represents the directors’ estimate of the costs expected to be incurred by the Company in removing its additions and
improvements and redecorating the Company’s office premises prior to the end of the office lease in June 2015.
Group Company

2014 2013 2014 2013

£’000 £’000 £’000 £’000
Office redecoration provision 18 - 18 -

18 Financial risk management

The Group’s and Company’s principal financial assets comprise cash and cash equivalents and other receivables. In addition, the Company’s financial assets
include amounts due from subsidiaries. The Group’s and Company’s financial liabilities comprise: trade payables; other payables; and accrued expenses.

All of the Group’s and Company’s financial liabilities are measured at amortised cost. The Group’s and Company’s financial assets are classified as loans and
receivables.

The Board of Directors determines, as required, the degree to which it is appropriate to use financial instruments, commodity contracts or other hedging
contracts or techniques to mitigate financial risks. The main risks for which such instruments may be appropriate are interest rate risk, liquidity risk and foreign
currency risk, each of which is discussed below. All non-routine transactions require Board approval. During 2014 the Group has not used derivative financial
instruments.

The Board consider that the risk components detailed below apply to both the Group and Company. Financial risks are managed at Group rather than
Company level.

Credit risk
Credit risk refers to the risk that the Group’s financial assets will be impaired by the default of a third party. The Group is exposed to credit risk on its cash and
cash equivalents as set out in note 14, with additional risk attached to other receivables set out in note 13. Credit risk is managed by ensuring that surplus funds
are deposited only with well-established financial institutions of high quality credit standing.

At 31 December 2014 the Group had no significant trade receivables. The Group’s focus on commercialising its technologies may result in significant trade
receivables during 2015, the credit risk on which will be managed by assessing the credit quality of each customer, taking into account its financial position
and any other relevant factors. The Company is exposed to credit risk through receivable balances from Group companies. See Note 23 for further detail.

24 Alexander Mining plc Annual Report &  Accounts 2014

Financial Statements

Notes to the Financial Statements

For the year ended 31 December 2014

Foreign currency risk

Foreign currency risk refers to the risk that the value of a financial commitment, recognised asset or liability will fluctuate due to changes in foreign currency
rates. The Group reports its financial results in Sterling and is therefore exposed to foreign currency risk as a result of financial assets, future transactions and
investments in foreign companies denominated in currencies other than Sterling.

Exchange gains and losses on financial assets or future transactions are recognised directly in the income statement. A proportion of the Group’s costs are
incurred in US Dollars, Australian Dollars and New Zealand Dollars. Accordingly, movements in the Sterling exchange rate against these currencies could have
a detrimental effect on the Group’s results and financial condition. Such changes are not considered likely to have a material effect on the Group’s financial
position at 31 December 2014.

Foreign exchange risk is managed by maintaining some cash deposits in currencies other than Sterling. The table below shows the currency profiles of cash
and cash equivalents:

2014 2013
£’000 £’000
Sterling 54 162
US Dollars 58 233
Australian Dollars 4 3
116 398

The table below shows an analysis of net monetary assets and liabilities by the Sterling functional currency of the Group:

2014 2013
£’000 £’000
Balances denominated in
Sterling (71) 100
US Dollars 58 232
Australian Dollars (31) (26)
New Zealand Dollars (241) (169)
(285) 137

Commodity price risk

Commodity price risk is the risk that the Group’s future earnings will be adversely impacted by changes in the market prices of commodities.
The Group is exposed to commodity price risk as its future revenues may be determined by reference to market prices of metals.

In addition to any new projects acquired by the Group, future revenue streams may include royalties from the development of third party assets.
The Group’s revenue from such royalty streams will be dependent on future commodity prices, both in terms of the absolute value of the royalty and
the commodity price required for the successful economic development of such assets.

Liquidity risk
Liquidity risk relates to the ability of the Group to meet future obligations and financial liabilities. The Group monitors its risk to a shortage of funds using
cash flow models, which consider existing financial assets, liabilities and projected cash inflows and outflows from operations.

The table below sets out the maturity profile of financial liabilities at 31 December.
Group Company

2014 2013 2014 2013

£’000 £’000 £’000 £’000
Due in less than one month 415 53 159 47
Due between one and three months 6 44 6 44
Due between three months and one year 18 192 18 22
439 289 183 113

31 December 2014 balances due in less than one month, include amounts owed to directors. Fee deferral agreements signed between the Company and the
directors on 1 January 2015 deferred amounts owed to directors, totalling £314,000, which may not be claimed for payment before 1 July 2016.

To date the Group has relied upon shareholder funding of its activities. Development of intellectual property, the acquisition of new opportunities, or the recovery
of royalty income from third party assets, may be dependent upon the Group’s ability to obtain further financing through joint ventures, equity or debt financing,
corporate developments or other means. Although the Group has been successful in the past in obtaining equity financing there can be no assurance that the
Group will be able to obtain adequate financing in the future or that the terms of such financing will be favourable.

Based on a review of the Group’s budgets and cash flow forecasts, the directors have identified that if current and near-term corporate development
opportunities are unsuccessful in providing adequate funding then the Company will need to raise finance within the next twelve months in order to continue
its operations and to meet its commitments.

In common with many mining, exploration and intellectual property development companies, the Company needs to raise finance for its activities in discrete
tranches to finance its activities for limited periods. The Directors are confident that the Company currently has a range of corporate development opportunities
which could include significant funding outcomes and moreover that, if necessary, any further funding can be raised as and when required.

25 Alexander Mining plc Annual Report &  Accounts 2014

Financial Statements

Notes to the Financial Statements

For the year ended 31 December 2014

Interest rate risk profile of financial assets

Interest rate risk is the risk that the value of a financial instrument or cash flows associated with the instrument will fluctuate due to changes in market interest
rates. Interest rate risk arises from interest bearing financial assets and liabilities that the Group uses. Interest bearing assets comprise cash and cash
equivalents. It is the Group’s policy to settle trade payables within the credit terms allowed and the Group does not therefore incur interest on overdue balances.

At 31 December 2014 and 2013 the Group had short term deposits which attracted interest as follows:
2014 2013

Interest Interest rate Interest Interest rate

£’000 £’000
Sterling deposits 1 0.2% 1 0.50%
Australian dollar deposits 0 0.75% 0 0%

The value of the Group’s assets at 31 December 2014 and 2013 and the result for the year would not be materially affected by changes in interest rates.

Fair values of financial assets and liabilities

It is the directors’ opinion that the carrying values of the Group’s and the Company’s financial assets and liabilities as at 31 December 2014 and 31 December
2013 are not materially different from their fair values. They have therefore not been shown separately.

19 Capital management
The Group’s objective when managing capital is to safeguard the entity’s ability to continue as a going concern, and develop its activities to provide returns
for shareholders and benefits for other stakeholders.

The Group’s capital structure comprises all components of equity (i.e. ordinary share capital, share premium, retained earnings and other reserves).
At 31 December 2014 the Group had no debt. When considering the future capital requirements of the Group and the potential to fund specific project
development via debt the directors consider the risk characteristics of all of the underlying assets in assessing the optimal capital structure.

20 Share based payments and share options

(i) Executive Share Option Plan
The Group operates an Executive Share Option Plan, under which directors, senior executives and consultants have been granted options to subscribe for
ordinary shares. All options are share settled.

The fair value of services received in return for share options granted is measured by reference to the fair value of the share options granted. This estimate
is based on a Black-Scholes model which is considered most appropriate considering the effects of the vesting conditions, expected exercise period and
the payment of dividends by the Company.

The following inputs were used in the calculation of the fair value of the share options re-issued or awarded during the period:

Date of Grant 12 May 2014

Fair value (p) 1 1.5p
Share price (p) 3.875p
Exercise price (p) 4.92p
Expected volatility 2 68%
Option life 3 years
Expected dividends 0.0%
Risk-free rate of return 0.5%

1 The fair value of options re-issued or awarded on 12 May 2014 was 1.5p per share.
2 Volatility for options granted was estimated based on the Company’s daily closing share price during the 12 months prior to the issue of the share options.

(ii) Other share options or warrants

On 15 May 2013 the Company granted 12,000,000 share options to Metalvalue Capital Holdings, exercisable at £0.05 per share until 30 April 2014,
at which date the options lapsed, unexercised.

On 15 September 2014 the Company granted 60,000,000 share options to an unnamed “mid-tier mining company”, exercisable at £0.03 per share until
15 December 2014, at which date the options lapsed unexercised. The non-refundable fair value of £39,000 received for those options was transferred
directly to accumulated losses.

Total contingently issuable shares

2014 2013
Executive share Option Plan 12,900,000 12,900,000
Other share options - 12,000,000
Total contingently issuable shares 12,900,000 24,900,000

26 Alexander Mining plc Annual Report &  Accounts 2014

Financial Statements

Notes to the Financial Statements

For the year ended 31 December 2014

The number and weighted average exercise prices of share options are as follows:

2014 2013
Weighted Weighted
average average
exercise Number of exercise Number of
price options price options
Outstanding at the beginning of the year 5.08p 24,900,000 10.10p 10,175,000
Lapsed during the year (Metaleach Capital Holdings) 5.00p (12,000,000) 10.00p -
Cancelled during the year 11.0p (500,000) 10.00p (9,675,000)
Re-issued during the year 4.92p 500,000 4.92p 9,675,000
Granted during the year (employees) - - 4.92p 2,725,000
Granted during the year (Metaleach Capital Holdings) - - 5.00p 12,000,000
Granted during the year (un-named “mid-tier mining company”) 3.0p 60,000,000 - -
Lapsed during the year 3.0p (60,000,000) - -

Outstanding at the end of the year 4.92p 12,900,000 5.08p 24,900,000

Exercisable at the end of the year 4.92p 4,300,000 5.21p 12,416,666

Share options outstanding at 31 December 2014 had a weighted average exercise price of 4.92 pence (2013: 5.08 pence) and a weighted average contractual
life of 5.98 years (2013: 3.76 years). To date no share options have been exercised. There are no market based vesting conditions attaching to any share options
outstanding at 31 December 2014. All options outstanding at the end of the year have a final exercise date of 22 December 2020.

On 1 January 2013, the 31 December 2012 balance of £558,371 held in the Share Option Reserve was transferred to Accumulated Losses. This represented
a change only in balance sheet presentation and had no net effect on total shareholders’ equity. All Share Option costs incurred thereafter are charged directly
to Accumulated Losses.

On 12 May 2014, the Board cancelled a total of 500,000 existing share options with an average exercise price of 11p per share and approved the issue of new
replacement share options, on a one-for-one basis, with an exercise price of 4.92p per share. The 4.92p exercise price represented a 27% premium over the
closing mid-market share price on 12 May 2014.

21 Commitments
Future commitments for the Group under non-cancellable operating leases are as follows:

2014 2013
£’000 £’000
Payable within one year 11 41

The Group does not sub-lease any of its leased premises. Payments under operating leases recognised in operating loss in the year are set out in note 4.

22 Contingent liabilities
There were no contingent liabilities at 31 December 2014 or 31 December 2013.

23 Related parties
The Group's investments in subsidiaries have been disclosed in note 11.
During the year the Company entered into the following transactions with other Group companies:

Sale of good Amounts owed by group companies

and services

At Increase Provisions At 31
1 January in year in year December
£’000 £’000 £’000 £’000 £’000
MetaLeach Limited - 2014 10 - 467 (467) -
MetaLeach Limited - 2013 10 - 467 (467) -

On 10 September 2014, the Company’s subsidiary, Molinetes (BVI) Limited, completed the sale of its entire interest in its subsidiary, Compania Minera Molinetes
SAC for the nominal sum of Peruvian Nuevos Soles 100 (approximately £21). Outstanding receivables of £439,339 due from these subsidiaries were written off
against provisions. At 31 December 2013 the Company had an outstanding amount receivable from Molinetes BVI Limited of £437,905 and a provision of
£437,905 against that balance.

At 31 December 2014 the Company had an outstanding amount receivable from MetaLeach Limited of £2,591,858 (2013: £2,124,138). The Company has
recognised a provision of £2,591,858 (2013: £2,124,138) against that balance, which has been assessed as impaired due to the uncertainty of success, over
extended timeframes, surrounding the subsidiary’s operations. The amount owed is unsecured, interest-free, and has no fixed terms of repayment. The balance
will be settled in cash. No guarantees have been given or received.

27 Alexander Mining plc Annual Report &  Accounts 2014

Financial Statements

Notes to the Financial Statements

For the year ended 31 December 2014

Details of directors’ emoluments are set out in note 6. Compensation for key management personnel was as follows:

2014 2013
£’000 £’000
Short-term employee benefits 597 616
National Insurance contributions 31 24
Other benefits 5 6
Share-based payments 20 19
653 665

During the year, MetaLeach Limited paid £nil (2013: £15,000) to consulting metallurgist Dr Katherine Malatt in respect of AmmLeach® testwork supervision.
Dr Malatt is the spouse of Garry Johnston, a senior Group employee.

During the year Alexander Mining plc received £18,924 (2013: £16,000) from Equest Limited in respect of office services provided to Global Oil Shale Limited.
Mr Matthew Sutcliffe is a director of Alexander Mining plc and was a director of Global Oil Shale Limited until 31 January 2014.

At 31 December 2014, the following amounts were owed to directors of the Company in respect of deferred payments of directors’ fees.
These amounts, totalling £331,000 (2013:£206,000), are included in Trade and Other Payables (note 16):

Mr M L Sutcliffe £242,000 (2013:£169,000)

Mr M L Rosser £ 44,000 (2013:£ 37,000)
Mr J S Bunyan £ 13,000 (2013: nil)
Mr A M Clegg £ 2,000 (2013: nil)
Mr R O Davey £ 15,000 (2013: nil)
Mr E M Morfett £ 15,000 (2013: nil)

24 Post balance sheet events

Post balance sheet issue of shares:

On 13 January 2015, the Company issued 72,000,000 new shares of 0.1p each for cash at 0.5p each to raise £360,000 (gross). In connection with that placing,
the Company issued 3,600,000 warrants, valid for two years, to subscribe for ordinary shares at 0.5p per share

On 13 January 2015 the Company also issued 1,090,909 new shares of 0.1p each, at a price of 0.825p per share, in lieu of £9,000 in fees due to the Company’s
nominated advisor and 1,500,000 new shares of 0.1p each at a price of 0.80p per share in lieu of £12,000 in fees due to a consultant for investor relations and
advisory services.

On 22 January 2015, the Company issued 5,000,000 new shares of 0.1p each, at a price of 0.6p per share, to Cove House Investments Limited, in respect of
consultancy and advisory services.

Following admission of the above shares, the Company has a total of 255,910,288 ordinary shares in issue.

On 23 February 2015 the Company announced a non-binding Heads of Agreement (“HoA”) signed with Compass Resources Limited (“Compass”) a listed
Australian public company, for an AmmLeach® licence and certain technical and management services relating to a feasibility study planned for the use of
AmmLeach® at Compass’s treatment plant and mine in Australia for copper, cobalt and nickel production.

Compass and Alexander are currently working to finalise the definitive agreement (‘Agreement’), conditional on completion of Compass’ proposed financing.
The key commercial terms agreed in the HoA are:

On completion of the definitive agreement, the Company will grant to Compass a licence to use Alexander’s leaching technologies (AmmLeach®). The principal
terms of the licence and technical consultancy and management services will include:
I. Cash payments by Compass totalling A$1,100,000 to Alexander on commencement of the Agreement;
II. Compass will also pay to Alexander:
a. A$400,000 three months after the initial fee payment; and
b. A$425,000 upon delivery of the feasibility study.;
III. A$550,000 during the construction and commissioning stage, dependent on a construction go-ahead decision; and
IV. A royalty of 2.6077% on saleable metal production after capped third party royalties.

Conditional upon the Agreement being executed, and subject to Alexander shareholders’ approval at the 2015 AGM, the Company will grant to Compass
the following share options:
I. options over 5 million ordinary shares of 0.1p each at an exercise price of 7.5p per share for 18 months from issue; and
II. options over 5 million ordinary shares of 0.1p each at an exercise price of 10.0p per share for 24 months from issue.

28 Alexander Mining plc Annual Report &  Accounts 2014

Shareholder Information

Notice of Annual General Meeting

(incorporated and registered in England and Wales under number 5357433)

Notice is hereby given that the Annual General Meeting of Alexander Mining Special Resolution
plc will be held at the East India Club, 16 St James’s Square, London, SW1Y 5. That, subject to the passing of Resolution 4, the Directors be given the
4LH at 10:30am on Wednesday 13th May 2015 in order to consider and, if general power to allot equity securities (as defined by Section 560 of
thought fit, pass resolutions 1 to 4 as ordinary resolutions and resolution 5 as the 2006 Act) for cash, either pursuant to the authority conferred by
a special resolution: Resolution 4 or by way of a sale of treasury shares, as if Section 561(1)
of the 2006 Act did not apply to any such allotment, provided that this
Ordinary Resolutions power shall be limited to:
1. To receive, consider and adopt the Directors’ Report and Accounts
for the year ended 31st December 2014, together with the Auditor’s 5.1 the allotment of equity securities in connection with an offer
report thereon. by way of a rights issue:

2. To re-elect as a director Mr M L Rosser who retires by rotation in 5.1.1 to the holders of ordinary shares in proportion (as nearly as may
accordance with Article 93 of the Company’s Articles of Association be practicable) to their respective holdings; and
and who, being eligible, offers himself for re-election.
5.1.2 to holders of other equity securities as required by the rights
3. To re-appoint BDO LLP of 55 Baker Street, London W1U 7EU, of those securities or as the Directors otherwise consider
as auditors of the Company and to authorise the Directors to necessary, but subject to such exclusions or other arrangements
determine their remuneration. as the Board may deem necessary or expedient in relation to
treasury shares, fractional entitlements, record dates, legal or
4. That the Directors be generally and unconditionally authorised pursuant practical problems in or under the laws of any territory or the
to Section 551 of the Companies Act 2006 (the ‘2006 Act’) to allot requirements of any regulatory body or stock exchange; and
shares in the Company or grant rights to subscribe for or to convert any
security into shares in the Company (‘Rights’) up to an aggregate 5.2 the allotment (otherwise than pursuant to paragraph 5.1 above)
nominal amount of £150,000 provided that this authority shall, unless of equity securities up to an aggregate nominal amount of
previously revoked or varied by the Company in general meeting, expire £150,000.
at the conclusion of the next Annual General Meeting of the Company
following the date of the passing of this resolution or (if earlier) 12 The power granted by this resolution will unless renewed, varied
months from the date of passing this resolution, but so that the directors or revoked by the Company, expire at the conclusion of the next
may before such expiry make an offer or agreement which would or Annual General Meeting of the Company following the date of
might require relevant securities to be allotted after such expiry and the the passing of this resolution or (if earlier) 12 months from the
directors may allot relevant securities in pursuance of that offer or date of passing this resolution, save that the Company may,
agreement as if the authority hereby conferred had not expired. before such expiry make offers or agreements which would or
might require equity securities to be allotted after such expiry
This authority is in substitution for all previous authorities conferred and the Directors may allot equity securities in pursuance of
on the Directors in accordance with Section 80 of the Companies Act any such offer or agreement notwithstanding that the power
1985, or Section 551 of the 2006 Act. conferred by this resolution has expired.

This resolution revokes and replaces all unexercised powers

previously granted to the Directors to allot equity securities as if
either section 89(1) of the Companies Act 1985 or section 561(1)
of the 2006 Act did not apply, but without prejudice to any
allotment of equity securities already made or agreed to be
made pursuant to such authorities.

The Board of Alexander Mining plc recommends that shareholders vote in

favour of all the proposed resolutions.

Members or their appointed Proxies are entitled to ask questions of the Board
at the Annual General Meeting. The Board will answer any such questions
unless (i) to do so would interfere unduly with the conduct of the meeting or
involve the disclosure of confidential information; or (ii) the answer has already
been given on the Company’s web-site; or (iii) to answer such questions is
contrary to the Company’s best interest or the good order of the meeting.

By order of the Board

T A Cross
Company Secretary
10 April 2015

Registered Office:
1st Floor, 35 Piccadilly, London, W1J 0DW

29 Alexander Mining plc Annual Report &  Accounts 2014

Shareholder Information

Notes to the Notice of

Annual General Meeting
1. A member of the Company entitled to attend and vote at this meeting 6. The following documents will be available for inspection during normal
is entitled to appoint one or more proxies to exercise all or any of the business hours on any week day at the Company’s registered office up
member’s rights to attend, speak and vote at the meeting, using the until the date of the Annual General Meeting and at the place of the
attached Form of Proxy. A proxy need not also be a member. If a meeting from 30 minutes before the start of the meeting on
member appoints more than one proxy to attend the meeting, each 13th May 2015 until the end of the meeting:
proxy must be appointed to exercise the rights attached to a different
share or shares held by the member. If a member wishes to appoint i) a copy of the Memorandum and Articles of Association
more than one proxy and so requires additional proxy forms, the of the Company;
member should contact Capita Asset Services on 0871 664 0300 (calls
cost 10p per minute plus network extras, lines are open 9.00am – ii) the contracts of service and letters of appointment between
5.30pm Mon - Fri). Completion and return of a Form of Proxy will not the Company or its subsidiary undertakings and its Directors.
preclude a member from attending and voting at the meeting should
the member so decide. 7. To appoint proxies or give/amend an instruction to an appointed proxy
via the CREST system, the CREST message must be received by the
2. To be valid, the Form of Proxy and any power of attorney or other issuer’s agent (ID: RA10) by 6:00pm on 11th May 2015 and time of
authority under which it is signed (or a notarially certified copy of such receipt will be taken as the time (as determined by the timestamp
authority) must be completed and returned so as to reach: (i) the applied by the CREST Applications Host) that the issuer’s agent is able
Company’s Registrars in accordance with the reply paid details or (ii) to retrieve the message. CREST Personal Members or other CREST
by hand to Capita Asset Services, The Registry, 34 Beckenham Road, Sponsored Members, and CREST Members who have appointed
Beckenham, Kent, BR3 4TU not less than 48 hours before the time voting service providers, should refer to their sponsor/voting service
appointed for the Annual General Meeting or any adjournment thereof. provider for advice on appointing proxies via CREST. Regulation 35 of
the Uncertificated Securities Regulations 2001 will apply to all proxy
3. A corporation which is a member can appoint one or more corporate appointments sent by CREST. For information on CREST procedures
representatives who may exercise on its behalf all of its powers as a and system timings, please refer to the CREST Manual.
member, provided that they do not do so in respect of the same shares.

4. The Company, pursuant to resolution 41(1) of the Uncertificated

Securities Regulations 2001, specifies that only those shareholders
registered in the register of members of the Company at 6:00pm on
11th May 2015 (or, if the meeting is adjourned, at 6:00pm on the day
two days prior to the adjourned meeting) be entitled to attend and vote
at the Annual General Meeting (and for the purpose of determining the
number of votes a member may cast). Changes to the register of
members after the relevant time shall be disregarded in determining
the rights of any person to attend and vote at the meeting.

5. If the Chairman, as a result of any proxy appointments, is given

discretion as to how the votes the subject of those proxies are cast
and the voting rights in respect of those discretionary proxies, when
added to the interests in the Company’s securities already held by the
Chairman, result in the Chairman holding such number of voting rights
that he has a notifiable obligation under the Disclosure and
Transparency Rules, the Chairman will make the necessary notifications
to the Company and the Financial Conduct Authority. As a result, any
member holding 3% or more of the voting rights in the Company who
grants the Chairman a discretionary proxy in respect of some or all of
those voting rights and so would otherwise have a notification
obligation under the Disclosure and Transparency Rules, need not
make a separate notification to the Company and the Financial
Conduct Authority.

30 Alexander Mining plc Annual Report &  Accounts 2014

Shareholder Information

Form of Proxy

Proxy Form for use by holders of ordinary shares at the Annual General Meeting (the ‘AGM’) to be held on Wednesday 13th May 2015.
Please read the Notice of the Meeting and the accompanying explanatory notes to this Proxy Form carefully before completing this Proxy Form.

I/We (block capitals please)

of

being a member/members of Alexander Mining plc, appoint the Chairman of the AGM or (see Explanatory Note 2)*

as my/our proxy to exercise all or any of my/our rights to attend, speak and vote in respect of my/our voting entitlement on my/our
behalf as indicated below at the AGM and at any adjournment thereof (see Explanatory Notes 3, 4 and 5).

Please tick here if this proxy appointment is one of multiple appointments being made.

* For the appointment of more than one proxy, please refer to Explanatory Note 4. Please clearly mark the boxes below to instruct
your proxy how to vote.

Resolutions For Against Vote withheld Discretionary

Ordinary Resolutions
1. Adoption of Report and Accounts

2. Re-election of Mr M L Rosser

3. Re-appointment of BDO LLP

4. Authority to allot new shares

Special Resolution
5. Dis-application of pre-emption rights

Signature (see Explanatory Note 6) Date

Explanatory Notes to the Proxy Form:

1. As a member of the Company you are entitled to appoint a proxy to exercise all or any of your rights to attend, speak and vote at the AGM on your behalf. You should appoint a proxy using the
procedure set out in these Explanatory Notes.

2. A proxy need not be a member of the Company but must attend the meeting to represent you. If you wish to appoint as a proxy a person other than the Chairman of the AGM, please delete the
words “the Chairman of the AGM” and insert the full name of the other person in the box provided on this Proxy Form. If you sign and return this Proxy Form with no name inserted in the box, the
Chairman of the AGM will be deemed to be your proxy. If the proxy is being appointed in relation to less than your full voting entitlement, please enter in the box next to the proxy holder’s name
the number of shares in relation to which they are authorised to act as your proxy. If left blank your proxy will be deemed to be authorised in respect of your full voting entitlement (or if this Proxy
Form has been issued in respect of a designated account for a shareholder, the full voting entitlement for that designated account).

3. The completion and return of this Proxy Form will not prevent you from attending in person and voting at the AGM should you subsequently decide to do so. However, if you have appointed a
proxy and attend the meeting in person, your proxy appointment will automatically be terminated.

4. You are entitled to appoint more than one proxy provided that each proxy is appointed to exercise rights attached to a different share or shares held by you. You may not appoint more than one
proxy to exercise rights attached to any one share. To appoint more than one proxy please use a photocopy of this form or contact Capita Asset Services on 0871 664 0300 (calls cost 10p per
minute plus network extras, lines are open 9.00am – 5.30pm Mon - Fri). Please indicate in the box next to the proxy holder’s name the number of shares in relation to which they are authorised to
act as your proxy. Please also indicate by ticking the box provided, if the proxy instruction is one of multiple instructions being given. All forms must be signed and should be returned together in
the same envelope.

5. If you wish your proxy to cast all of your votes for or against a resolution you should insert an “X” in the appropriate box. If you wish your proxy to cast only certain votes for and certain votes
against, insert the relevant number of shares in the appropriate box. The “Vote Withheld” option is provided to enable you to instruct your proxy to abstain from voting on a particular resolution. A
“Vote Withheld” is not a vote in law and will not be counted in the calculation of the proportion of the votes “For” or “Against” a resolution. The “Discretionary” option is provided to enable you to
give discretion to your proxy to vote or abstain from voting on a particular resolution as he or she thinks fit. In the absence of instructions, your proxy may vote or abstain from voting as he or she
thinks fit on the specified resolutions and, unless instructed otherwise, may also vote or abstain from voting as he or she thinks fit on any other business (including on a motion to amend a
resolution, to propose a new resolution or to adjourn the AGM) which may properly come before the AGM.

6. This Proxy Form must be signed by the member or his/her attorney. Where the member is a corporation, the Proxy Form must be executed under its common seal or signed by a duly authorised
representative of the corporation, stating their capacity (e.g. director, secretary). In the case of joint holders, any one holder may sign this Proxy Form. The vote of the senior joint holder (whether in
person or by proxy) will be taken to the exclusion of all others, seniority being determined by the order in which the names stand in the register of members in respect of the joint holding.

7. To be valid, the Form of Proxy and any power of attorney or other authority under which it is signed (or a notarially certified copy of such authority) must be completed and returned so as to reach
(i) the Company’s Registrars in accordance with the reply paid details,
(ii) or by hand to Capita Asset Services, The Registry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU, not less than 48 hours before the time appointed for the meeting.

8. Pursuant to Regulation 41 of the Uncertificated Securities Regulations 2001, entitlement to attend and vote at the AGM and the number of votes which may be cast thereat will be determined by
reference to the register of members of the Company at 6pm on the day which is two days before the day of the AGM or adjourned meeting. Changes to entries on the register of members after
that time shall be disregarded in determining the rights of any person to attend and vote at the meeting.

9. All alterations made to this Proxy Form must be initialled by the signatory.

10. If you submit more than one valid proxy appointment in respect of the same share or shares, the appointment received last before the latest time for the receipt of proxies will take precedence. If
the Company is unable to determine which was received last, none of the proxy appointments in respect of that share or shares shall be valid.

11. Shares held in uncertificated form (i.e. in CREST) may be voted through the CREST Proxy Voting Service in accordance with the procedures set out in the CREST manual.

31 Alexander Mining plc Annual Report &  Accounts 2014

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Shareholder Information

Company Information

Company Information Directors and Advisors

Alexander Mining plc, 1st Floor, 35 Piccadilly,
London, W1J 0DW, United Kingdom Company Secretary
Telephone: +44 (0) 20 7292 1300 T A Cross
Fax: +44 (0) 20 7292 1313
Email: info@[Link] Directors
Website: [Link] M L Sutcliffe
M L Rosser
Company registration number: 5357433 J S Bunyan
A M Clegg
R O Davey
E M Morfett

Registrars
Capita Asset Services
40 Dukes Place, London, EC3A 7NH

Auditor
BDO LLP
55 Baker Street, London, W1U 7EU

Nominated Adviser and Broker

Northland Capital Partners Limited
131 Finsbury Pavement, London, EC2A 1NT

Registered office
1st Floor, 35 Piccadilly,
London, W1J 0DW, United Kingdom

Designed and produced by effektiv

+44 (0)20 7251 7720 / [Link]
Alexander Mining plc
Annual Report &  Accounts 2014

Alexander Mining plc

1st Floor 35 Piccadilly
London W1J 0DW
United Kingdom

T: +44 (0) 20 7292 1300

F: +44 (0) 20 7292 1313

[Link]
admin@[Link]